I’m sorry, but even with Larry Ellison at the helm, Oracle hasn’t done much in the past decade. There was a time when Oracle was one of the biggest and baddest player in the Tech Sector. During the Dot Com Bubble of 2000, Oracle DBAs were literally getting paid 250-300K Annually. With the emergence of other players in the Database Solutions and Cloud Computing sector, Oracle has been in a steady decline over the past couple years. The YoY Earnings have been dismal to say the least. The lack of innovation and the willingness to make large strategic acquisitions, are just some of the reasons why Oracle has lost its dominance in the Technology Industry. At a time when Oracle should have been at the forefront of, and anticipated, the Cloud Computing Revolution, Oracle was basically on the sidelines waiting for someone to throw the Challenge Flag. Unfortunately, this was like the Packers and Bears NFC North championship game last year (2013-2014), where Aaron Rodgers flung the rock to Randall Cobb on 4th and 8 with just 40 Seconds left on the clock, and bodied the Bears hopes of advancing to the playoffs. In this scenario, Oracle is the Chicago Bears. By the time Jay Cutler got the ball back, it was already too late.
With that said, if we were to consider the resources and MONEY that Oracle has at its disposal, it would be stupid for anyone to completely count them out. And by-the-way, Larry Ellison is just stepping down as the CEO of Oracle. He’ll still be involved with the Company; just not the regular day-to-day activities. So let’s pump our brakes here before we make any sweeping statement about how this is the beginning of the end of Oracle. I guess the fact that the Oracle’s Stock (ORCL) is practically unchanged after the announcement of Larry Ellison stepping down, is an indication of how confident investors are in Oracle’s ability to get out of this “Slump”.
The Bottom Line:
As a former Stock/Options Trader who’s made a decent amount of money for my Employers on Wall Street trading Oracle Stock (ORCL), anyone out there at this moment considering dumping Oracle’s Shares in the wake of Larry Ellison stepping down as the CEO of the company, needs to calm the F**K Down. I’d suggest taking a wait and see approach of how the market reacts in the coming days/weeks, and then consider exiting the trade.
Good Luck 🙂