Oracle Is at an Inflection Point, but Investors Should Remain Prudent
If you listen to Oracle's (NYSE: ORCL) recent earnings call, the future of the software giant looks bright. For instance, Chairman and Chief Technology Officer Larry Ellison described the company's autonomous database for on-premises clouds as a "gigantic shift" and "one of our biggest and hottest new products ever." That's quite a strong statement for a 43-year-old tech giant that has grown its revenue to $39.1 billion over the last 12 months.
However, investors should remain cautious. As the company has been undergoing its transition to a cloud-focused model, solid revenue growth has yet to materialize. Instead, it has delivered several years with a fairly flat top line.
Oracle's fiscal fourth-quarter results were underwhelming compared to guidance: Revenue dropped 4% year over year in constant currency to $10.4 billion.
Source Fool.com
