The market's reaction to Oracle's third-quarter earnings was almost a classic "buy the hype, sell the news" event. Except that the hype turned out to be wishful thinking.
The stock had been shooting nicely higher since early March on the supposition that Oracle was going to deliver a blockbuster report today. From a March 4 closing low of $18.44, Oracle shares had jumped more than 14% to $21.08 on Tuesday as investors bet on a strong report.
But when the numbers disappointed, the market slammed Oracle, knocking the shares 8.2% to $19.22 in after-hours trading. The shares had finished off 0.7% to $20.94 in regular Nasdaq trading
Read More...
