Analyst: One Tech Stock Will Rule (Hint: Not IBM, MSFT)

J.P. Morgan software analyst John DiFucci notes a startling development at software giant Oracle .

"What we've seen all across the S&P is, people cutting their dividends, cutting them significantly; Oracle's instituting a new dividend," he told CNBC. "What that says is, Oracle's management team is confident in its free cash flow."

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He said that while other software companies may rally on the news from Oracle, that firm's fortunes do not translate across the sector.

"This is a company that's executed in good times, and it's executed in bad times, and it probably will continue to do that," he said. "This is most of the same management team that took them through the last downturn."

It may even be in better shape in the future: Oracle, he pointed out, has broadened its platform since that last downturn, when it was basically a database company.


Oracle and software rival Microsoft are investment banking clients of DiFucci's firm.

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