Oracle Won a $7 Billion Pentagon Contract on Thursday. Yet Shares Have Been Slammed.
A 10-year award covering the entire U.S. military landed on a stock that has stopped caring about contracts.
Overview
On Thursday, the Department of Defense awarded Oracle (NYSE: ORCL) a consolidated software agreement covering the entire U.S. military, the Coast Guard, and the intelligence community. The initial award is worth $3.31 billion over five years, and a second five-year option, if exercised, would carry the total to $6.99 billion.
On Friday, the stock fell 4.2%. Shares closed at $114.99 -- 24 cents above the 52-week low of $114.75 they had touched earlier in the same session.
Details
A contract that size usually buys a company at least a good day. This one didn't buy an hour.
Source
Originally published at www.fool.com.
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