Thursday, October 15, 2015

ORCL 10/15 Update



ORCL began trading the month of October at $36.12. ORCL closed at $37.82 on October 13th, representing a 4.7% increase thus far this month. This after a rebound in ORCL is expected after a mixed earnings report and a volatile few months in the market. The competition for ORCL became a little bit more complex this month as Amazon introduced a database system that will compete with companies like ORCL and SAP; this occurring as ORCL is transitioning its primary focus from database systems to cloud related technologies. On Wednesday morning as a result of increased competition ORCL was downgraded to "market underperform" from "market perform” with a $31 PT by analysts at JMP Securities. Despite the recent downgrade from JMP, other analysts still remain positive, as Jeffries has ORCL at a PT of $50. ORCL’s growth prospects remain strong in the cloud component, as they are growing faster into that market as compared to many of their competitors.

Jeff Sherman

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