Amazon (AMZN - Get Report) and other cloud computing offerings are expected to grow at the expense of Microsoft (MSFT), Dell (DELL), Hewlett-Packard (HPQ) and other traditional hardware and software providers.
However, before we all call our broker to short sell everyone but Amazon, keep in mind that Oracle has cloud offerings; as technology changes and costs continue to fall, cloud computing may only be fashionable for a few years.
I trust the market will give the company the same amount of latitude and quickly look to next quarter's release to determine if Wednesday was a speed bump on the database highway, or a fundamental change in the ability of Oracle to compete. As a consequence, we should expect to see the support level at the 200-day moving average hold and the shares to start the ascent once again, same as before. Either way, now isn't the time to decide to sell. If you want to take a stop loss and get out at least give yourself enough time to see if support holds. If the share price support doesn't hold, you're most likely only looking at an additional 2% decline. On the other hand, if support holds, the upside is most likely at least a 10% possibly much more. At the time of publication, the author held no positions in any of the stocks mentioned. Follow @RobertWeinstein This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts