https://seekingalpha.com/article/4271998-oracles-stock-may-fall-amid-weak-results
Oracle's (ORCL) results do not appear to be as stellar as the stock's sharp rise last week would suggest. When digging deeper into the financials, one can easily see that the majority of the company's significant earnings beat came on a massive reduction in the share count.
Oracle burned $29 billion in FY2019, mostly on stock buybacks. With only $37 billion left, this is not sustainable, not even for one more year. The one time tax break that led to the net income increase won't happen again in FY2020 either. They're done making people think their cloud stuff is selling and are not even reporting cloud revenue separately anymore. They've run out of tricks.
I'd like to see the amount each of the top 10 companies spent buying back their stock... would Oracle be number 1?
@ZJ1OziF-1mav, great point. No more comment needed.
Stock buybacks are a Ponzi schema and the practice was illegal during the entire history of the stock market until the early 1980’s. Now it is no longer a crime so it is hidden in plain sight.
No other company buys back stock worth of their entire years revenue (not profit).
Who said the sky was falling? You, but no one else ZJ1OziF-adi. EPS went up because of stock buy backs, and Oracle is not the only one to do that, true. Is this cause for concern (not emergency, pull the rip cord) but it should put the investor community on alert considering there are few other verifiable activities pushing the stock price up.
You can fool some people some of the time ...., and even then usually not for too long ...
Yeah but these other companies have businesses that are growing, Oracle does not
Lots of companies including Berkshire Hathaway, Microsoft etc do stocks buybacks due to cash excess from repatriation from overseas ; there is nothing wrong with it: it allows shares to appreciate in value ;
Worst tech stock out there by a wide margin
You can laugh all you want but the facts are undeniable. Oracle has spent $36 billion on stick buybacks and that is the only reason that Eps was up. The cash is running out for stock buybacks and then what?
LOL. Getting bad when you're re-posting articles from one one man, no-name investment firm.
Yup. sky is falling.