Oracle Corporation (NASDAQ:ORCL) and Intel Corporation (NASDAQ:INTC) led the tech sector rally on Wednesday after the stock prices of both companies increased.
Oracle Corporation (NASDAQ:ORCL) and Intel Corporation (NASDAQ:INTC) led the technology sector rally after the stock price of both companies increased by more than 4 percent and 1 percent, respectively at the time of this writing.
Shares of Oracle Corporation (NASDAQ:ORCL) rose by 4.17 percent to $34.25 per share after the company reported earnings yesterday. The tech giant posted $2.58 billion net income, an 18 percent increase , analysts expected the company to report an earnings growth of around 9 percent to 12 percent for the quarter.
Oracle Corporation (NASDAQ:ORCL) reported $0.52 earnings per share, higher than the $0.48 earnings per share consensus estimate of analysts based on data from Thomson Reuters. The company’s revenue came in at $9.11 billion.
According to the company, its profit grew due to strong demand for its cloud computing service. Oracle expanded its cloud-computing business by acquiring Right Now Technologies, Taleo Corporation, and Sun Microsystems.
Intel Corporation (NASDAQ:INTC) stock price climbed by almost 1 percent to $21.14 per share during the afternoon trading on Wednesday. Earlier in the day, the stock traded higher than 1 percent to $21.28 per share, and emerged as the best performing stock in the Dow Jones Industrial Average, which remained flat.
Intel Corporation (NASDAQ:INTC) recently announced the pricing of four series of notes with an aggregate amount of $6.0 billion.
According to the company, $3.0 billion of the series of notes will mature on August 15, 2017 with an annual interest rate of 1.35 percent and $1.5 billion will mature on December 15, 22 with an annual interest of 2.70 percent.
The company offered the 2017 notes to the public at 99.894 percent, and the notes set to mature in 2022 were offered for 99.115 percent. Intel plans to use the net proceeds from the sale of the notes to repurchase its common stock and for other corporate purposes. Companies are taking advantage of low borrowing costs to issue debts with low yields.
Intel is scheduled to report its fourth quarter earnings on January 17, 2013. The company is expected to report $13.6 billion revenue.
Meanwhile, Apple Inc. (NASDAQ:AAPL) weighed down the tech sector. The stock of the company fell by 1 percent to $528.56 per share. This month, Apple’s stock value declined by 10 percent.
In a research note to investors, Mark Moskowitz, analyst at JPMorgan Chase & Co. (NYSE:JPM) said the concerns regarding the lower demand for the iPhone 5 was overblown. According to him, “In recent days, the stock has been under severe pressure as investors react to signs that the supply chain has been adjusting to lower orders from Apple Inc. (NASDAQ:AAPL) related to iPhone 5. Our research indicates that the order cuts could impact the March quarter, but build plans are ever-changing. Either way, we think the order adjustments are explainable but not alarming.”