Oracle: Why This Is A Good Moment For A Simple Covered Call
Portfolio Pulse from
Oracle's stock is considered overvalued by 20% based on a DCF model and comparisons with historical averages and Microsoft. While Oracle has a strong position in DBMS, ERP, and Cerner, its IaaS and hardware segments are weaker. Growth is expected to accelerate to 12% by 2026, driven by CapEx in IaaS Cloud, but sustainability without impacting margins is uncertain.
December 05, 2024 | 12:00 am
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Oracle's stock is perceived as overvalued by 20%, with strong positions in DBMS, ERP, and Cerner, but weaker in IaaS and hardware. Growth is expected to reach 12% by 2026, driven by IaaS Cloud investments, though margin sustainability is uncertain.
The article suggests Oracle's stock is overvalued by 20%, which could lead to a short-term price decline. Despite strong positions in certain segments, weaknesses in IaaS and hardware, along with doubts about sustainable growth without margin impact, contribute to a negative outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100