After the hell that many hotshot software stocks have put investors through this young year, Wall Street analysts got a break.
“Listening to Oracle (ORCL) conference calls is always a hoot,” said Canaccord Genuity analyst Richard Davis in a research note Wednesday, following Oracle’s late-Tuesday Q3 earnings that beat analyst estimates. “In the 16 years we’ve followed this firm, we can’t remember a quarter when management wasn’t wildly bullish. This quarter was no different, with Trump-like phrases like ‘slaughter,’ ‘better and better,’ ‘game over,’ etc.
“The good news for our now almost exactly 3-year-old buy rating is that Oracle’s execution has begun to catch up with its verbiage. Indeed, this was the first quarter in four in which Oracle did not scuffle somewhere — bookings, revenues, earnings or whatever. Investors are still jumpy after the January panic, so this means they are flocking to moneymakers like Oracle.”
Oracle stock was up 4% in afternoon trading in the stock market today, near 40, and touched an eight-month high. Rivals Microsoft (MSFT), Salesforce.com (CRM) and SAP (SAP) were up about 1% Wednesday afternoon.
Not that Davis was totally giddy: “Should ORCL decisively penetrate the $40 price level, we will declare victory and seriously consider downgrading the stock from today’s buy to a possible hold.”
What’s all the fuss?
They can visualize Oracle’s cloud-revenue skyrocketing, while traditional database-software sales shrink.
Oracle and its traditional enterprise-software customers have faced a tough conversion, but now Oracle is developing serious momentum with its own cloud and hybrid-cloud growth, shepherding the transition of its customers while absorbing the shrinkage of its still-dominant traditional enterprise sales.
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SOURCE: Investors.com
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