https://articles.marketrealist.com/2019/03/is-oracles-earnings-growth-riding-on-dividend-hike-and-buybacks/
The cloud business requires massive capex spending. Instead of spending on capex oracle us using the cash for stock buybacks.
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Desperately throwing good money after bad - paying $50 for shares that are only worth $5, but hey it keep LE solvent and makes SC & MH rich. Can only do it for so long though, the end is in sight - Get ready for oracle trading at $5 per share - good time to sell whole these id--ts are buying
Divestment is one great way for high-percentage owners to get cash or better stock thus diversifying. Think about who cannot ever sell Oracle stock without tanking it...
DEC divested as well during their decline. It is a sure sign a company is in trouble.
"I think it is a fair question whether Oracle Corporation will exist at all in five years. "
I would keep an eye out for divestment, as in selling off divisions, as HPE has been doing. When that starts to happen, then you know the end is coming.
They could easily bought Rackspace and Zoho to boost their portfolio and acquire great missing pieces, and still have $6 billion leftover.
But nope - gotta boost that short term dividend per share I guess.
Face it folks, oracle is not trying to compete in the cloud business, all oracle is doing is pretending to compete in the cloud business. As for his this is going to end, well look no further than how MH single handeadly ran HP into the ground and oblivion - he’s doing it again. ORACLE HAS NO FUTURE - DEAD COMPANY DIGGING ITS OWN GRAVE.
Unfortunately SC is an Accountant and doesn't understand cloud economics. Oracle's cloud strategy is "if they come, we will build it".
That doesn't work, it's the wrong way around, especially when the other guys have been building out global infrastructure for years now.
I think it is a fair question whether Oracle Corporation will exist at all in five years.
Yes, it can really happen that fast. But Safra Catz got paid.
http://www.platformonomics.com/2018/05/follow-the-capex-separating-the-clowns-from-the-clouds/
Oracle’s cumulative spend on cloud CAPEX looks to be about $3.5 billion. However, that’s about what each of the big three public clouds spend in a quarter.
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Amazon, Google, and Microsoft each spent more on CAPEX in 2017 than Oracle has in its entire history.
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Both IBM and Oracle are tens of billions of dollars in cloud infrastructure CAPEX behind Amazon, Google, and Microsoft.
https://www.crn.com/news/data-center/hyper-scale-data-center-capex-kings-spend-record-120-billion
Hyper-Scale Data Center ‘Capex Kings’ Spend Record $120 Billion This is the kind of you need to spend to compete with Amazon, Microsoft and google. Oracle is instead using their cash for stock buybacks.