The iShares S&P GSTI Software (IGV) exchange traded fund (ETF) invests in large software companies such as Oracle (ORCL) at 7.8%, Microsoft (MSFT) at 7.7%, Adobe Systems (ADBE) at 7.1% and Symantec (SYMC) at 6.3%. Currently, it’s up 6.9% year-to-date.
Some major activities are happening within IGV’s top holdings. Yesterday, Europe’s second highest court, the European Court of First Instance, rejected Microsoft’s request to nullify sanctions ordered by the European Commission that restricts the company’s business practices, reports Byron Acohido for USA Today. The European Commission fined Microsoft $613 million, which the company has paid. The upheld ruling forces Microsoft to adjust the way it sells its Windows operating system in Europe.
Despite Microsoft’s bad news, Adobe brought some good news to the table with its higher-than-expected earnings report. Yesterday, the company announced that its third-quarter profit more than doubled last year’s, setting a revenue record, according to Rachel Konrad for the Associated Press. Third-quarter sales were a record $851.7 million, which is up 41% from $602.2 million in the third quarter of 2006. With so much ongoing within IGV, it will be interesting to see how the news affects its performance.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.