Interested in investing in Oracle stock? Take a look at our article to find all the information you need before taking the plunge.
Are you considering investing in Oracle stock ? Oracle is listed on the Nasdaq Global select Market in the United States. It’s an interesting investment to consider, as this American giant is a leader in the enterprise software market. However, before investing, you need to make sure you know as much about the company as possible. Take a look at our article to find out more!
Founded by Harry Ellison in 1977, Oracle is a company operating in the technology sector. Oracle sells licenses (mainly database software and decision support software), that account for 83.2% of its revenue.
In addition to selling software, it also offers hardware, which accounts for 8.8% of its revenue. It also provides its customers with consulting and training services, which account for a further 8% of its turnover.
Oracle is doing relatively well. In 2017, its market capitalization amounted to 186,847.80 MUSD. Since going public, the company has issued more than 4,131,000,000 shares on the stock market.
Currently, it is part of the American stock market index SP100, which gives it a place among the most powerful companies in terms of market capitalization.
The company is held by:
The group has forged partnerships with major companies. In 2013, it allied with its competitor Salesforce in a nine-year partnership encompassing cloud computing. Through this partnership, Oracle has opened up to other horizons.
In 2013, the company forged another partnership, this time with its competitor Microsoft.
Although the U.S. enterprise software giant is the market leader, it faces competition from other major groups, such as Microsoft, IBM (second in terms of revenue after Oracle), and other brands, such as Siemens or Adobe.
Recently, Oracle has communicated positively about its financial situation, as it recorded encouraging profits for the year 2020. Indeed, its EPS (earnings per share) represented 1.16 against 1.11 of consensus.
Unfortunately, Wall Street doesn't agree. According to experts, the company has not met its growth potential. They urge executives to take necessary action.
Of course, the company has already considered solutions to bounce back from the crisis. In 2021, for example, it plans to increase its dividend per share to $1.04, up from $0.96 in 2020.
Despite the fluctuating share price, many investors are still interested in Oracle stock. The reasons for their interest are the quality of its services, its workforce, its leadership in enterprise software sales, its capacity for innovation, its varied portfolio and its communication strategies.
Despite its strengths, the American enterprise software group also has some weaknesses. Competition is very tough, as many companies offer similar services.
Beyond competitors, the brand also experienced a decline in popularity due to a lawsuit that tarnished its image in the eyes of its customers.
