|Bid||0.00 x 900|
|Ask||48.90 x 21500|
|Day's range||47.83 - 48.81|
|52-week range||42.57 - 53.48|
|PE ratio (TTM)||54.03|
|Earnings date||12 Sep 2018 - 17 Sep 2018|
|Forward dividend & yield||0.76 (1.65%)|
|1y target est||53.27|
The U.S. Defense Department is running a winner-take-all competition to choose a cloud-computing company to host its trove of information, perhaps including top national-security secrets, so that warfighters and military leaders can make data-driven decisions at "mission-speed." Amazon.com Inc., Microsoft Corp. and International Business Machines Corp. are among those vying for the multibillion-dollar contract. The massive scope of the project, and the Pentagon’s intention to choose just one winner, has caught the attention of the tech industry and U.S. lawmakers. Some technology companies think the Defense Department favors Amazon.
BLOK Technologies Inc. ("BLOK Tech" or the "Company") (CSE:BLK) (2AD.F) is pleased to announce that its 100% owned subsidiary Greenstream Networks Inc. (“Greenstream”) has been accepted into the Oracle Scaleup Ecosystem, a global acceleration program for start-ups. Oracle’s global start-up mission is to provide enriching, collaborative partnerships to enable next-generation growth, business development, and to drive cloud-based innovation for start-ups throughout all stages of their development. The program is designed for start-ups and venture capital and private equity portfolio companies to enable hypergrowth and scale.
Oracle’s tepid top- and bottom-line guidance for fiscal Q1 2019 has affected its stock price. Wedbush has downgraded Oracle stock from “outperform” to “neutral” and slashed its price target to $49 from $55.
Oracle’s (ORCL) EPS have continued to grow, driven by rising demand for its cloud and license business, adoption of its ERP1 and HCM2 SaaS3 products, the successful integration of NetSuite, and its autonomous database launch. The company’s strong product portfolio has helped it counter competition against tech giants such as IBM (IBM), Microsoft (MSFT), and Accenture (ACN).
Oracle (ORCL), the leading database service provider, has been selected by French-based ÏDKIDS COMMUNITY to help analyze consumers’ behavior and preferences—according to an announcement on July 9. Oracle’s retail planning and optimization cloud services will be implemented by ÏDKIDS COMMUNITY to achieve its objectives.
As a latecomer to the cloud business, Oracle (ORCL) has implemented various strategies in terms of acquisitions, new product launches, and product upgrades. Oracle’s aggressive acquisition strategy not only saves time for the company to develop and upload new applications in its cloud but also provides customers easy access to its cloud products. Oracle Cloud’s fully autonomous self-driving database is also supporting customer growth.
Oracle (ORCL) has continued to enhance its cloud platform through important acquisitions such as that of NetSuite, and by launching innovative product features. The company’s Fusion ERP1 and HCM2 products are hugely popular and remain key drivers of its overall cloud business. The company’s aim to combine innovative features such as voice recognition applications and autonomous database capabilities in the cloud may further drive business going forward.
Oracle (ORCL) has maintained a strong capital return policy to boost shareholders’ wealth. In the last five years, the company has put ~$55.9 billion toward stock buybacks and regular dividend payments, at an average of ~$11.2 billion per year. It has bought back $43.2 billion in stock at an average of $8.6 billion per year.
Oracle (ORCL) is gradually converting its cloud service types—SaaS1, PaaS2, and IaaS3—into a single standard data center. These data warehouses are supported by a bare-metal infrastructure managed by a single unified operations team.
The launch of Oracle’s (ORCL) BYOL (bring-your-own-license) policy offers clients the opportunity to migrate their existing on-premises licenses to Oracle Cloud. As Oracle’s license revenue generated through the BYOL program did not fall under its on-premises or cloud business, the company changed its reporting segments in fiscal Q4 2018. Oracle now reports its software licenses under its new cloud license and on-premises license segment, and has combined its cloud SaaS1, PaaS2, IaaS3, software license updates, and product support into cloud services and license support. As shown in the graph above, the newly merged cloud service and license support business has grown at a compound annual rate of 2% over the last five quarters.
On June 20, Microsoft’s (MSFT) market capitalization was $782.7 billion. Meanwhile, tech peers IBM (IBM), Amazon (AMZN), and Oracle (ORCL) had market caps of $130.9 billion, $849.2 billion, and $174.8 billion, respectively, as shown in the graph below.
Of the 33 analysts covering Microsoft (MSFT) on June 20, 27 recommended “buy,” four recommended “hold,” one recommended “sell” and one rated it as “overweight,” as shown in the graph below. Their average target price was $112.35 on June 21, and the stock’s closing price was $101.87. As we’ve discussed throughout this series, Microsoft has continued to ride on the success of its Office 365 and Azure products.
The leading database management operator, Oracle (ORCL), continues to expand its cloud-based warehouse management (or WMS) capabilities. Both yard management and the Oracle inventory management cloud, which are new additions to WMS announced yesterday, offer better inventory management solutions.
On June 14, CNBC reported that JPMorgan Chase analyst Mark Murphy wrote in a note to clients that “specific metrics in our large-scale CIO1 survey have arced over into negative territory, which makes us uncomfortable because the results of our CIO surveys over the years have been highly predictive,” adding that “Oracle spending intentions have only looked lukewarm in our CIO survey work in the recent past, but the data takes a dive in the current survey.” He indicated that CIOs stated that they are moving Oracle databases to Microsoft (MSFT) SQL Server, Amazon (AMZN) databases, and PostgreSQL. CNBC reported that, in the results of Murphy’s survey of 154 CIOs, “Oracle received the most indications for ‘spending contraction’ this year.” Only 2% of CIOs counted Oracle as their “most integral” cloud-computing vendor, compared with 27% for Microsoft and 12% for Amazon. Based on the CIO spending survey, JPMorgan Chase lowered its rating for Oracle stock to “neutral” from “overweight,” and reduced its price target to $53 from $55.
So far in this series, we’ve discussed Oracle’s (ORCL) fiscal Q4 2018 results. Let’s look at where it stands in the software space in terms of market capitalization.
So far in this series, we’ve discussed Oracle’s (ORCL) fiscal Q4 2018 results. Oracle’s fiscal Q4 2018 results exceeded analysts’ expectations, boosting its stock by 1.5%. However, this surge was short lived. Oracle’s decision to group its cloud revenue with its cloud service and licensing support revenue seems to have met with market disapproval and weighed on Oracle stock.
Previously, we discussed Oracle’s (ORCL) cloud revenue, which is now included in the company’s cloud service and licensing support segment. Like peers, Oracle is dependent on the cloud for growth and transformation. As a result, the cloud, which is expected to fuel Oracle’s growth, will be much more difficult to analyze in the future.
In this series, we’ve discussed Oracle’s (ORCL) recently announced fiscal Q4 2018 results and the performance of its cloud offerings. We also discussed Oracle’s position in the cloud space, which prompted JPMorgan Chase to downgrade its stock. In general, industry analysts disapproved of Oracle’s reporting structure change. According to Bloomberg Intelligence senior analyst Anurag Rana, the change at Oracle “masks the performance of its cloud infrastructure and applications segments,” and “overshadows higher-than-expected sales and adjusted EPS growth.”
Previously, we discussed what factors could boost the US dollar (UUP), which has a significant bearing on Oracle’s (ORCL) top line. Let’s now look at how Oracle’s cloud offerings performed in fiscal Q4 2018. During the quarter, Oracle’s cloud services and license support revenue grew 8% to $6.8 billion, contributing 60% of the company’s overall revenue. Cloud license and on-premises license revenue fell 5% to $2.5 billion.
Previously, we discussed Oracle’s (ORCL) reasoning behind its changed reporting structure, where cloud revenue is now a part of the company’s cloud service and licensing support segment. Naturally, this change leads some to question why Oracle would do this if its cloud business is flourishing—something it would want to flaunt to investors rather than hide.
Previously, we discussed Oracle’s (ORCL) top line’s dependence on the US dollar (UUP). Sharing his thoughts on the dollar’s movement, Morgan Stanley global head of currency strategy Hans Redeker (MS) said, “Market volatility remains very low and the headline risks from trade concerns should push that higher,” as reported by BTVI.