What Does Cap Ex Spending Tell Us About Oracle's Future Cloud Growth?
May 23, 2018 6:41 AM•ORCL
Summary
Oracle capital expenditures appear to be much lower than the rest of the major cloud providers.
Oracle's cap ex is trending down while the rest fo the industry appears to be trending up.
Weak cap ex may signal weak cloud sales growth.
In a previous article we looked at whether or not Oracle’s (NYSE:ORCL) cloud sales matched the pattern of other companies that successfully transitioned to the cloud based subscription business models. We found that Oracle’s cloud sales growth patterns did not match other successful companies. However, sales figures are a lagging indicator. The company is reporting information that occurred in the past. In this article, we will look at what a leading or coincident (depending on your point of view) might say about Oracle’s cloud aspirations.