Goldman Says Software Companies Will Be Next to Feel Slowdown

Goldman Sachs is cutting its 2001 estimates for several software companies, including Microsoft (MSFT Quote), Oracle (ORCL Quote) and Ariba (ARBA Quote), citing the threat of "an increasingly difficult economic environment, or a recession."

"We continue to believe that the software companies on our Recommended List are among the best-positioned companies in the software space," the firm wrote in a research note. "However, it would be naive of us to believe that these companies can get through an increasingly difficult economic environment, or a recession, without being in at least some way negatively impacted."

Goldman said its near-term estimate changes weren't "particularly large," but indicated that the revisions will largely point to a possible slowdown in the last three quarters of 2001.

The firm's report also referenced Commerce One (CMRC Quote), i2 Technologies (ITWO Quote), Red Hat (RHAT Quote) and PeopleSoft (PSFT Quote).