Oracle (NASDAQ:ORCL), is kissing the Nasdaq Stock Market (NASDAQ:NDAQ) goodbye. The business software giant announced Thursday that it will move its share-listing to the New York Stock Exchange, marking a major victory for the NYSE, and a major desertion for the Redwood City, Calif.-based company. Via The Wall Street Journal, Patrick Healy, chief executive of Issuer Advisory Group, explains, “It’s certainly among the biggest transfers ever. The real question is what’s behind the shift.”
Nasdaq and the NYSE see-saw back and forth between victory and defeat, constantly in an ever-present battle to lure the big companies to pick their exchange to list their shares. Although Oracle’s move signifies a significant blow to Nasdaq, the exchange has had its fair share of big triumphs over the NYSE. Its success at winning over Kraft Foods (NASDAQ:KRFT) and Facebook (NASDAQ:FB) especially comes to mind. The landing of these big brand names was a major victory for the exchange, as the win not only boosted its reputation, but also allowed the NYSE to bring in more listing feeds and benefit from the revenue of the companies’ traded shares.
Prior to Kraft, the NYSE also had other big Nasdaq victories to endure, including the acquisition of Texas Instruments (NYSE:TXN) and Viacom (NYSE:VIAB). Those big-name landings, coupled with the NYSE’s inability to win over Facebook, are the reason the NYSE needed this great Oracle “counterpunch.” The two exchanges are especially critical of each other, as NYSE officials continuously resurrect Nasdaq’s failed pass at Facebook while Nasdaq questions the NYSE’s handle on trading, especially after its massive trading error at Knight Capital Group (NYSE:KCG).
Though Oracle has yet to explain the reasoning behind its planned switch next month, the move represents how eager the NYSE and Nasdaq are to win listings as they attempt to entice companies by promising to promote their business while it praising their own individual market models.
While Oracle will retain its ticker and begin trading on the Big Board on July 15, for now, Nasdaq can lick its wounds with the satisfaction that the Cali.-based company’s earnings are falling way below Wall Street expectations. Following a disappointing fourth-quarter earnings report, its shares were down 7 percent in pre-market trading Friday morning, and 8.75 percent by mid-afternoon Friday.