Can Oracle Corporation (ORCL) Hold Its Momentum? – Acme Packet, Inc. (APKT)

Page 1 of 2

Oracle Corporation (NASDAQ:ORCL)Shares of Oracle Corporation (NASDAQ:ORCL) are up 23% since closing at $29.42 on Nov. 14. For that matter, since early September, the company has added $13 billion in market cap. And looking back farther, since reaching a low of $25.33 last May, the stock has surged 43%. And yet, shares are still making new 52-week highs.

The fact that the shares have soared so quickly have caused investors to wonder if there’s still room here to profit. While some stocks often take off and never look back, especially those in tech, Oracle has consistently given investors plenty of second chances to buy. And now is just as good a time as any, because Oracle’s now packing heat.

Where’s the “new” Oracle going?
We can’t talk about Oracle Corporation (NASDAQ:ORCL)’s momentum without first knowing when and where it started. I’ve highlighted what the stock price has done over the past several months, but the company has done everything in its power to deserve the optimism, including a beat on both the top and bottom lines in the second quarter, which also included an 18% increase in profits.

However, the most impressive aspect of the report was the 17% surge year over year in  software licenses and subscriptions business — enough to exceed management’s own bullish projections. This suggests that Oracle’s cloud strategy is performing well, despite what bears may think. However, Oracle is a much different company today — helped by its recent acquisitions of Acme Packet, Inc. (NASDAQ:APKT), which has a 40% share in the session border control, or SBC, market.

Oracle Corporation (NASDAQ:ORCL) now has a way to offer enterprise clients secure network sessions that supports multiple applications. What’s more, Acme Packet, Inc. (NASDAQ:APKT)’s product portfolio, which includes the Net-Net line of devices, now gives Oracle another way to better compete against enterprise rival Cisco Systems, Inc. (NASDAQ:CSCO). For that matter, Oracle’s ability to now pivot off its Cloud portfolio puts current rivals such as salesforce.com, inc. (NYSE:CRM) and International Business Machines Corp. (NYSE:IBM) at a disadvantage.

The ability to now attack new markets is one thing, but Oracle is able to leverage what the database giant already does well, especially considering the growing demand among service providers looking for ways to engage their customers in more effective ways. Hence, another shot at Salesforce and IBM. Oracle was always known as a savvy acquirer, but Acme Packet, Inc. (NASDAQ:APKT) just might have been Oracle’s signature piece to its one-stop-shop enterprise model — a way to create separation from core rivals.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!