Has oracle, finally, reached the point of the death spiral where cost cuts lead to declining revenues, lead to more cost cuts, which lead to further revenue declines .... as Infinitum until it implodes on itself?
The signs aren’t good ...
9 replies (most recent on top)
Make no mistake. It is the deathstar. Oracle can continue to try to stop the bleeding but ultimately, you will see more people leave as the culture eats itself. It seems greed has finally caught up to Mr. Ellison and his lackluster leadership. I doubt Oracle will ever go away...but it it is looking at a substantial haircut in the next 24 months.
5ylr: not completely true. yes rep'd money has given some headroom, but O is already red in net cash close to minus 20B due to debts, almost all done to sustain the stock buyback. it's no more sustainable even in the very short term, that's the reason of the very aggressive cost cut
Last year O spent $36B in stock buybacks. Can't last long spending $36B and making $10B.
Last year O, as did many corporations, repatriated foreign profits, which is why they had $36B to spend on buybacks. They will spend less on buybacks in 2020.
O is till making $10B profit a year. Hardly "running out of cash". Is it being wasted on buybacks? Yeah it is and in the long haul it will hurt O. But O is in no danger of collapsing anytime soon.
Last year O spent $36B in stock buybacks. Can't last long spending $36B and making $10B.
According to this https://www.cnbc.com/2019/12/05/oracle-shows-buybacks-can-go-too-far.html Oracle has spent in buybacks 41B in just the last 5 qrtrs, much more than the 10B/Y figure.
Actually, Oracle has turn to debt to fuel the buybacks, hoping maybe for a miracle (someone remember the 80$/share promise?)... currently net cash (cash minus short- and long-term debt) is negative 17B.
It's just incredible and very sad that a supposed technology company is doing debts to buyback its own shares in order to sustain the price for the major shareholders (since the actual payslip for them is coming from selling shares)
Running out of cash
O is till making $10B profit a year. Hardly "running out of cash". Is it being wasted on buybacks? Yeah it is and in the long haul it will hurt O. But O is in no danger of collapsing anytime soon.
Yes, Oracle is in a death spiral. Not sure about the "star" analogy.
But, yes, declining revenues, hiring freeze, no new blood to do the work of the s—ups and liars that abound in the company, so bad products, leading to more declining revenues, etc, etc.
Running out of cash that should have been used to fix the ship, but instead was wasted on stock buybacks to prop up the "leadership" at the top.
Get out of the company, you deserve a break today.
FWIW, neither Death Star self destructed.
Been an employee for +15 years and I fully agree with the dead spiral perspectives for big red.
Time to find a suitable alternative before the whole thing collapses.