Oracle Corporation (ORCL)
ORCL started the month of July trading at $40.25 which is
below out purchase price of $42.25. The recent decline is due, in large part,
to the most recent Q4 earnings release which showed strong growth, but missed
expectations due to foreign currency challenges. In the earnings release Oracle’s
primary cloud component revenue saw an increase of 29% while the pro forma
growth (excluding currency headwinds) saw an increase of 35%. ORCL closed on
Friday July 17th at $40.40 representing a 0.3% increase so far this
month. During the past month Oracle’s management was criticized for their
seemingly large executive pay. Oracle’s founder and chairman received $67.2
million in compensation in 2014, down from his 2013 pay of $96.2 million. Oracle
continues to stay ahead of their competitors; they are growing faster in the cloudscape
then many of their competitors. And they are also maintaining growth in their
traditional markets. I believe that ORCL will continue to be a good investment
throughout the next quarter. There have been rumors of Oracle being able to
acquire a smaller cloud company.
Jeff Sherman
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