CNET también está disponible en español.

Ir a español

Don't show this again

Christmas Gift Guide
Tech Industry

i2 Technologies rides Oracle&#039s coattails

Shares of i2 Technologies Inc. (Nasdaq: ITWO) rocketed up 7 3/8, or 22 percent, to 40 7/16 Wednesday, making it one of the biggest beneficiaries of Oracle's terrific fourth-quarter earnings.

i2, along with PeopleSoft Inc. (Nasdaq: PSFT), SAP (NYSE: SAP) and Manugistics Group Inc. (Nasdaq: MANU), develops enterprise resource planning software.

While Wall Street was concerned that Y2K spending would dent these companies' sales and earnings in fiscal 1999, Oracle's blowout earnings and optimistic outlook have some analysts reevaluating their positions.

On Wednesday, Goldman Sachs raised i2 Technologies from a "market outperform" rating to its vaunted "recommended list." Morgan Stanley Dean Witter started coverage of the stock with an "outperform" recommendation.

SAP shares moved up 2 1/2, or 8 percent, to 34 5/8 while PeopleSoft and Manugistics gained 15/16 and 1 1/4 a share, respectively.

First Call consensus expects i2 Technologies to earn 10 cents a share in its second quarter and 44 cents a share in the fiscal year.

Its shares moved up to a 52-week high of 42 1/4 in July after falling to a low of 9 1/4 in October.

Eighteen of the 23 analysts following the stock rate it either a "buy" or "strong buy."