There are enough examples which one might mention here: Nokia, MySpace, Yahoo, Kodac, AOL, Blockbuster, toys‘r‘us … all ones big. Yes, oracle might not vanish, but it definitely needs some change.
None of those were in business since 1977 (w/ the exception of Nokia, which I would argue is still a successful company today. I wouldn't put it on that list).
None of those were ever valued (even close to) half a trillion, even adjusting for inflation.
So while it's hard to call a company with $50+ billion in revenue a failure, they're not nearly what they once were. That's the direction I see Oracle going.
Your second point is right on the spot! Its valued. By what? By others, right? Somebody says a company has a value, which might not reflect its worth. As mentioned by some other commenters, Oracle has a lot of competition. Good competition. That's why I wrote it needs to change in order to stay competitive.
Is this news to anyone in here?