After all, the company continues to hit estimates, operating margins are continually improving, the market is as huge as ever, and still mostly untapped. Perhaps that's why eBay has outperformed the Nasdaq composite index in recent months. Meanwhile, shares of i2 plunged as companies throttled their technology spending near the end of the first quarter. No one expects things to get much better until year's end. There's a good chance its software products will gain share in their markets while the technology recession continues.
Software does sell in challenging times, as well as good times.
That kind of pitch always gets Wall Street salivating. Financial folks glom onto any technology that saves money and pays for itself quickly. Yet the reality is that more companies will delay installing expensive software that changes their business processes. Corporations will wait for their own business to turnaround before putting money back into new technology. That's not the fault of i2, which should be just fine once the downturn passes.