Oracle Corp
ORCL: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $82.00 | Nymzsx | Bzy |
Oracle's Switching Costs Are Moderated Amid Cloud Migrations, in Our View
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Business Strategy and Outlook
Oracle is a best-in-breed provider of on-premises relational database technologies and enterprise resource planning, or ERP, software and is one of the most profitable companies in the software industry. However, growth has been lacking as more customers shift their workloads to the cloud, bypassing Oracle’s solutions. Despite Oracle’s cloud migration efforts, cloud competition will likely provide headwinds for Oracle. In turn, our moat rating for Oracle is narrow, coupled with a negative moat trend rating.