Why oracle stock is down ?
Oracle crushed earnings and stock was up by 10% touching 105 range. Later when broader market is doing well (apple/fang , avgo, cisco, intel), why oracle is down ? Broader market as of this month cares about profitable companies with good fundamentals and oracle fits well in it. I felt cloud (oci/subscription revenue) division in oracle is having a good growth. Is cerner acquisition pulling the stock down. Any other reason ?
Your latter assumption is correct. There's a general theory that the acquirer will tank and the acquiree will pop because they're overpaying with premium. The premium is status quo so that's why this theory always seems to be garuanteed Look back to Salesforce and Slack, Twilio and SendGrid, etcetc
true, thank you
Oci is crap, few heavily discounted external customers and rest are all internal. Oracle mostly game the price through buybacks, which they canโt currently do very well as they dumped a boatload of cash to acquire Cerner
thank you for valuable insight. I think oci is in beginning phase and has a lot of runway coming up. Oracle is a big corp and their tech (databases/sql) has been integrated in so many small, big and mega tech companies. They cannot be easily displaced and will survive for long time. Oracle is trying to leaverage this relationship to push oci to customers which i feel is right and smart move which will bring in subscription based rev. Oci is facing touch competition from aws, azure, gcp and they may be pushing features faster than needed causing the quality to go down. It will eventually even out and things will be smoother. Azure is /was always criticized for quality and aws was way better. but azure is slowing getting maturity and oci will in sometime. Furthermore oracle is still a good dividend play unlike many other stocks. I may not add more to my position because of what you mentioned but will hold for sometime until things are more clear.
Because the fed faucet was turned off. So most people are dumping their positions especially tech stocks. I'm a ๐ ๐ป btw. When the FED isn't easing, it's tough times.
Because mercury is not in retrograde
Retrograde is a pos