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fyt2024

Interesting. Tell me more. The stock looks wild. Time to go short?

Oracle is an interesting company.

Lots of locked-in enterprises, but everybody in tech hates them.

I think they're a future IBM, but it'll take a long time, perhaps decades, to get there (once an ERP, database system, or cloud provider gets into a big enterprise, it's not leaving again soon).

They have rock solid earnings [https://valustox.com/ORCL] but they're trading at high valuations given their low growth rate and modest dividend.

I am neither buying nor shorting them right now.

I think the only tech people who hate them are the ones who think that Oracle is a database company ala Postgres and then wonder why it is worth billions of dollars. Most of their current revenue for now comes from their fusion ERP suite that runs in the cloud. Those products have a lot of stickiness as businesses don’t switch ERP systems often.

Never short based on fundamentals. It takes a lot of tuition fees (losses in the market) to learn that lesson.

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