A Closer Look at Oracle's Slowing Growth

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Sept. 18 (Bloomberg) -- Oracle forecast earnings that trailed analysts’ estimates, as rising competition in cloud computing restricts the company’s growth. Cory Johnson takes a closer look at Oracle's slowing growth on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Company falls.

Cory johnson is back with more.

Oracle plus growth, meager growth.

2%. service revenue, falling 8%. software revenue, 7%. when you look at the company, one of the first things we always look at is the stock chart.

It is with the market tends to think of this company.

For oracle, the stock has risen in spite of really consistent fallout.

I have been in new york all week listening to people talk about quantitative easing.

Yes, it drives up stock prices.

Look at the sales growth for oracle over the last six quarters.

Over 18 months we have seen this company grow at a much slower and slower pace.

Just 2% sales growth.

They were thinking it would be 3%. the stock is up 15%. at the same time, revenue growth is so much slower.

You could really see the problem they are having getting people to buy their software.

What's about to money?

Is oracle still making money?

There was a time when oracle just printed money, but the profit growth is slowing quite a bit for this company.

But profit growth, $8.4 billion in the last quarter, that is a little bit more than laster by $200 million.

You can see the trend of there.

Again, you do not see really strong growth from this company.

Obviously, this is a big acquisition.

Everybody has been wondering how the integration has been going.

What can you tell us about that?

They have said they are downsizing it, in too many places doing too many things at once.

We have not seen the bottom of it.

It continues to fall out.

It is not falling as much, maybe we're getting close to an end.

I said that 13 weeks ago when it was only down 19% year-over- year.

Down 7% year-over-year.

They did not buy that business to see it shrink.

They bought it to accelerate the growth in the rest of the company.

Instead, you are saying the shrinkage in the hardware business.

The slow growth in the services business.

Oracle's problem really reflects a loss of the problems.

The enterprise customers are not buying a lot more.

The company slowing down and the sales team losing 70 out 1. new zealand in the lead.

-- 7 to one.

This text has been automatically generated. It may not be 100% accurate.


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