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I don't know that it's fair to say that Oracle has survived the test of time; their core business has been on a steady decline for years; now they are playing c
by jakewins 9y ago
I don't know that it's fair to say that Oracle has survived the test of time; their core business has been on a steady decline for years; now they are playing catch-up in cloud and are talking about second derivative growth like they were an undergrad startup.
The fact is that they have not grown their top line for five years(1), 70% of their business is in a dying sector and they have opted to cut R&D spending in favor of stock buybacks and dividend payouts for years(2).
I don't see how they can change course; their investors keep asking for dividends while the bulk of their competitors are either privately owned or public with strong founder/owners; point being Oracles competitors are controlled by investors that want R&D spending, Oracle is not, and Oracle sorely needs R&D to build a portfolio that'll keep them from being yet another leveraged buy-out..
(1) https://ycharts.com/companies/ORCL/revenues
(2) http://marketrealist.com/2016/12/oracles-share-buybacks-dividend-trend-will-run-2017/
- Turbots 9y agothey are extremely arrogant, too. They said they will be the biggest cloud provider in the world in 5 years (bigger than AWS, Google Cloud or Microsoft Azure)... I'll eat my hat if they succeed in that! ;-)