Thursday, March 21, 2013
Stock Market Exchange: Oracle drops the ball
Oracle's stocks dropped 8% after missing their 3rd quarter goals. This is another great example for the opposite of the spectrum - how you can lose money. According to sources the quarter failed because of the bad sales executions, and for a software company this means trouble. Say you invested some money in Oracle, let's go with one million dollars just for example. An 8% loss for your one million dollars in stock means you lost (1,000,000*0.08) is eighty grand. That is a pretty big loss, but there are companies that go completely under and your stocks become worthless. That is a one million dollar loss. This is just how the game of stocks works - lose big, win big. Of course we aren't dealing with millions of dollars, but you still don't want to lose money. For Oracle this is a tough blow, because they have been ranked down on many sites placing around 3rd, or even 4th best software company. Each stock also lost around $3, which is another tough blow for investors. For their sake I hope they recover.
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