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 …
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 ...
Unless...
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?
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.
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.
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