back to article Oracle spaffed $30bn on buybacks over the past 9 months, but analysts warn it can't last forever

Amid stalling growth, analysts have warned that Oracle can't indefinitely repurchase stock to maintain its share price. Although stock buybacks are not unusual, the rate of this programme has raised eyebrows on Wall Street and strained even Big Red's purse strings. It has spent some $30.3bn on share repurchases in the past …

  1. Locky

    In completely unrelated news

    Customer licence review letters coming in 3... 2... 1....

  2. Anonymous Coward
    Anonymous Coward

    Those tax cuts in action

    We're seeing this everywhere in the US - the tax cuts are funding stock buybacks and share prices are rising, the economy is booming and investors are getting some wonderful returns. Investments in productivity, new products, development, customer support? Err, maybe we'll talk about it next year ...

    1. hammarbtyp

      Re: Those tax cuts in action

      ...and not on workers wages. What a shock

      1. anothercynic Silver badge

        Re: Those tax cuts in action

        Good heavens no! Workers and wage increases? Are you MAD?

        1. hammarbtyp

          Re: Those tax cuts in action

          Its that old dilemma, Are they mad or just republican

    2. Anonymous Coward
      Anonymous Coward

      Re: Those tax cuts in action

      Outstanding Stocks are effectively debt.

      Using tax cuts to pay off debts makes a company healthy as their business plan remains unchanged.

      I wish the U.S. government would stop running a deficit, and start paying down the debt!

      1. Anonymous Coward
        Anonymous Coward

        Re: Those tax cuts in action


        The support of the share price is just to hide the problems within the cloud business.

        All UK (employee) Oracle Consultants are being "Pushed" to get their Fusion Cloud certification.

        I've worked in EBS for almost two decades and Fusion Financials is solid but Fusion Supply Chain looks as though it comes from back then. How can a business claim to be going forward when it's going back to decades old software?

      2. P. Lee

        Re: Those tax cuts in action

        Stock is a risk/reward mechanism. Buying it back could mean the company is expecting higher future profits which it wishes to retain... or concentrate in the hands of the remaining shareholders.

        My concern would be if they are borrowing to buy their stock back.

  3. The Nazz

    Ok, ok, so i'm no George Soros

    But if large scale buybacks generally result in an increase in the stock prices, why would anyone sell to the buyer eg Oracle, and not simply sell on the market afterwards? Are the buybacks compulsory on stockholders?

    1. creature.shock

      Re: Ok, ok, so i'm no George Soros

      The stock buy backs on the open market. It comes down to that when people want to sell the stocks, the company is there to buy it first.

  4. Lorribot

    Don't wory, they are about to cream big time from th Java tax. It will keep them in business for a decade or so.

    SAP and about every other two bit app uses it so no chance of unlicencsing every core in the business anytime soon just incase you use one of them, even theat one out ther e in that brach office that may just mange with the same VCentre as your datacenter.

    The sooner they go bust the better for the whole world. they are the worst possible leech.

  5. KLane

    And totally unrelated to....

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