Just yesterday, software giant Oracle was trading for around $29 a share. Now, after a disappointing earnings report due in large part to the slow down in Europe, Oracle’s stock (ORCL) is trading for around $25 a share. Ouch. That’s over a 13% drop.
What’s worse though is when you look at from a market capitalization standpoint. The $4 drop in price with about 5 billion shares outstanding works out to a $20 billion loss. Ouch again. Then you could say how much is that $20 billion worth in terms of other companies. How about Salesforce.com which is worth about $13 billion and Research in Motion which his worth about $7 billion. Yes, that means Oracle just lost what’s equivalent to two entire companies in value. That certainly puts this Oracle earnings missing in perspective.
Hat tip to Jonah Lupton who laid out this comparison in a Tweet this morning.