Larry's $200 Million Yacht is Lonely as Oracle CEO Won't Stop Making Deals
Larry Ellison, the 11th richest man in the world, is restless. In the last 2 years he’s spent more than $20 billion to make Oracle (ORCL) the first and last name in business software. First, he bought his competitors including Peoplesoft and Seibel Systems - then he moved to smaller growth companies including last month's purchase of Hyperion. The 'buy everything in sight' strategy worked for a while, but over the last 6 months Oracle's stock has flat-lined. Can Ellison keep buying his way to big returns?
Dylan Ratigan says in after hours trading, shares of Oracle spiked up 4% - that’s because the company’s quarterly earnings were up 35%, due to revenue from software acquisitions.
Jeff Macke says Oracle had a very solid quarter. Oracle is on a 5 year plan to increase growth by 20% and Jeff says they’re well into that plan.
Jeff adds there is no organic growth in the software space, according to Larry Ellison, and that’s why the company has begun the acquisition string. It’s going to continue.
Tim Strazzini adds Oracle is taking a larger piece of the pie and consequently competitor SAP(SAP) is suffering.
Eric Bolling suggests Technology SPDR (XLK) looks really good to him as a derivative trade.
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