“Oracle isn’t terribly cheap anymore. And around $31, (where the stock traded in the after market) the stock runs into resistance. At a time when tech has a lot of names that offer a lot of value – I wouldn't run into Oracle," says Fast Money trader Tim Seymour.
Post earnings, Steve Grasso says much the same. “I’d rather go into Microsoft ,” he adds, "or even Intel."
Those were our pros gut reactions after Oracle shares popped 3% on better than expected results.
The bullish action was largely triggered by optimism about sales, after the company said new software sales rose 7 percent from a year earlier to $2.4 billion, which was at the high end of Oracle's forecast. Investors pay close attention to new software sales because they generate high-margins.
And these results were all the more significant, because Oracle missed targets last quarter, which caused the company's profit to fall short of Wall Street forecasts for the first time in a decade.