Through The Fly's Eyes: Oracle Corporation
Use Price Weakness To Buy Stock
Oracle (ORCL) reported a sharp deceleration in applications growth. Apps growth was 28% versus some 80% in the previous quarter.
However, the core of Oracle's strategy remains in place: using middleware as a platform to strengthen its position against SAP (SAP) and BEA (BEAS) and, in addition, using acquisitions to enter new vertical markets.
Oracle said that it continues to gain market share against BEA and is having very good success entering the retail vertical with revenue tripling in this space.
Oracle provided a relatively sluggish outlook for the February quarter which might lead to this stock being dead money for awhile, but investors should stay with this stock. The global economy is growing nicely and demand for Oracle's products should remain solid. In addition, there is still little euphoria for tech stocks which often signifies a top in the tech sector.