5 Simple Reasons to Stay Away From Oracle

Oracle's (NYSE: ORCL) stock rallied more than 30% over the past three years, but the source of that growth is a divisive topic for investors. The bulls claim that Oracle won back investors by pivoting away from its legacy businesses toward higher-growth cloud services, but the bears note that the stock's rally was mostly driven by aggressive buybacks as the company's revenue growth flatlined.

I've been bearish on Oracle ever since it obfuscated the growth of its cloud services by changing its reporting segments last June. I claimed that Oracle was looking more like the "old" IBM (NYSE: IBM) with each passing quarter, and its recent first-quarter report backs that bearish thesis.

Let's discuss five simple reasons investors should still stay away from Oracle.

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Source Fool.com