Thread regarding Oracle Corp. layoffs

At net-debt Oracle, a $75 billion argument that stock buybacks can go too far

https://www.cnbc.com/2019/12/05/oracle-shows-buybacks-can-go-too-far.html

The multiyear buyback binge cost more than a third of today’s market value for Oracle and has pushed the company into net debt despite sporting $35.7 billion in cash and short-term investments on its balance sheet.

“How does this buyback strategy help you in 2025?” Freeman said. “The cloud guys are eating your lunch. You can’t do $10 billion a year in buybacks and build out your cloud services. There’s no way.″

In Oracle’s case, unlike that of similarly-sized tech giants Cisco or Intel, the interests of shareholders virtually boil down to pleasing Ellison, the S&P analyst said.

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Post ID: @OP+12mmF2V8

7 replies (most recent on top)

While SC was touting Oracle stock during calendar Q1 2019, a stock whose share price is bloated by buybacks funded by corporate bond debt, SC sold $256 million of her own ORCL stock options.

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Post ID: @1yrb+12mmF2V8

LE will get blame for longstanding pay and hiring discrimination too.
SC in court all day but not convincing. Someone has to take the fall. Can't be her...
https://www.washingtonpost.com/technology/2019/12/05/oracle-allegedly-underpaid-women-minorities-by-million-now-details-are-set-come-out-court/

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Post ID: @1cjm+12mmF2V8

They bet everything in Cloud Washing and distortion. After that, only way to milk the cow is through buybacks. The they the real status of the company is widely known, its value will go down to zero.

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Post ID: @1ujv+12mmF2V8

the buyback is all about supporting LE massive debt load.

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Post ID: @1wkv+12mmF2V8

Brutal article, but the most concerning facts are still not widely known, or put together.

Oracle tried to build a Cloud business having a strong aggression on customers, disguising one thing as another and carving out future revenue. When it did not work out, buybacks. This will end badly.

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Post ID: @1fnk+12mmF2V8

Brutal article. With the departures, something happening. Watch your backs, keep looking.
Hard to know if employees and stock better off with LE or not. Might be a transition slump and cost cutting to try to keep stock from disaster.

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Post ID: @gtq+12mmF2V8

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