Wednesday, October 24, 2012

Stock Fluctuation for Software Companies

In the last few days there is big fluctuation in the stock value of big companies like Google, Apple and Microsoft. This is mainly after the announcement of Google's Q3 2012 result.

Google result shows drop in the net profit for the third quarter compared to last year. In addition the result was announced in advance due to manual error. The same day the Google price dropped drastically and the day's transaction was stopped.

Due to this drop the stock value of Apple went down. In addition after the release of the IPad Mini pricing, the drop continued.

Last week Friday Microsoft announced their result and there also the profit gone down compared to last year. The stock value has gone down around 8%.

In the last one month, Splunk value gone down by 18%. CA Inc. has got big growth in Jan 2012 also had small impact this month.

Solarwinds was doing well in this year due to more acquisition, gone down by 8%. The Q3 Result will be announced today. This may give some improvement in the value if the result is good.

Cisco had a big drop in May 2012 after their Q4 results, picked up in August 2012 after their Q1 2013 results. Their value also got affected after the Google & Microsoft results this month. In general, the PC or device market is getting affected and that is reflected in the Microsoft and Google results. The same is expected companies like Cisco.

As the Smart phones and tablets usage are increasing, the IOS and Android application development is hot. This will create a new space in the market.

Saravanan

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