Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here’s What Polen Capital Say About Oracle Corp. (ORCL)’s Move to Cloud

Polen Capital discussed Oracle Corporation (NYSE: ORCL) and other companies in its Q2 investor letter – you can download a copy here. The investment management firm believes that the “cloud is more incremental” to Oracle’s business “than threatening.” Let’s take a look at Polen Capital’s comments about Oracle.

Oracle’s weakness in the quarter likely has more to do with its new earnings disclosures or lack thereof. The business is growing as we would expect with Oracle navigating a complicated transition to the cloud that is not very easy to track as outsiders. We have been very patient shareholders for 13 years as we know how difficult it is to replace Oracle’s databases once they are operating inside a customer’s business.

It is not the fastest growing business, but it does have a lot of stability and satisfactory growth potential as cloud is more incremental to their business than threatening. Going forward, Oracle is merging its on-premise and cloud disclosures, making it even more difficult to track the progress here over time. We, likely along with many other shareholders, will be communicating our dissatisfaction with their disclosure policies and hope management reconsiders. The stability of the underlying business makes this more of a nuisance issue for us, but we certainly believe more disclosure is better than less, especially during business model transition periods like they are going through today.

Oracle ORCL

Ken Wolter/

For the first quarter of fiscal 2019, Oracle Corporation (NYSE: ORCL) reported total revenues of $9.2 billion, up 1% in U.S. dollars and up 2% in constant currency, compared to the same quarter last year. Total cloud services and license support plus cloud license and on-premise license revenues were up 2% to $7.5 billion. Cloud services and license support revenues were $6.6 billion, while cloud license and on-premise license revenues were $867 million.

Oracle shares are up 8.22% since the beginning of this year. The company’s share price has increased 17.77% over the past three months and 7.38% over the past 12 months. ORCL has a consensus average target price of $53.14 and a consensus average recommendation of ‘OVERWEIGHT’, according to analysts polled by FactSet. The stock was closed at $51.63 on Wednesday.

Further, Oracle Corporation (NYSE: ORCL) is a popular stock among many hedge funds tracked by Insider Monkey. As of the end of the second quarter of 2018, there were 50 funds in our database with position in the company, including Yacktman Asset Management, International Value Advisers, and BloombergSen.

Disclosure: none

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.