After September’s Q2 earnings call for Oracle, it looked like the big software giant was left behind. Not only was the company being stepped on by the likes of SAP and Microsoft, but their move into the cloud had them trailing Salesforce, RedHat and even Amazon in the chase for new customers. These software names had been making new all-time or multi-year highs in this very strong bull market – but not Oracle. The company’s poor results led to a (well-deserved) beat down on the stock.
However, the technicals show that this big company may be turning the corner. Turnover has improved, and while the stock is well below the recent highs in September, it is now trying to fill the gap and move another 5% higher than the current price. MACD is on a buy signal, and money flow has turned positive, the first time since it broke down mid-September.
I expect to see the stock make a run on the orange lines over the coming weeks. Q3 earnings will be released in about six weeks, which is plenty of time for buyers to show up.
Oracle (Nasdaq: ORCL) Video Chart Analysis
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About Oracle
Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure technologies for information technology (IT) environments worldwide. It provides services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service. The company licenses its Oracle Database software, which enables storage, retrieval, and manipulation of data; and Oracle Fusion Middleware software to build, deploy, secure, access, and integrate business applications, as well as automate their business processes. It also provides software for mobile computing to address the development needs of businesses; Java, a software development language; and big data solutions. In addition, the company offers human capital and talent management, enterprise resource planning, customer experience and customer relationship management, procurement, project portfolio management, supply chain management, business analytics and enterprise performance management, and industry-specific application software, as well as financial management and governance, risk, and compliance applications. Further, it provides Oracle Engineered Systems, servers, storage, industry-specific hardware, management software, and hardware support products, as well as operating systems, and virtualization and other hardware-related software. Additionally, the company offers customers software license updates and product support contracts; database, middleware, and development software, as well as cloud-based platform and infrastructure; and IT strategy alignment, enterprise architecture planning and design, initial software implementation and integration, application development and integration, security assessments, and ongoing software enhancements and upgrade, as well as customer support and education services. The company was founded in 1977 and is headquartered in Redwood City, California.
