56.50 +0.43 (0.77%)
Pre-Market: 8:31AM EDT
|Bid||56.37 x 1400|
|Ask||56.54 x 2200|
|Day's Range||56.21 - 57.18|
|52 Week Range||42.40 - 57.47|
|Beta (3Y Monthly)||1.09|
|PE Ratio (TTM)||18.88|
|Earnings Date||Sep 16, 2019 - Sep 20, 2019|
|Forward Dividend & Yield||0.96 (1.68%)|
|1y Target Est||55.84|
(Bloomberg) -- The Pentagon is preparing for the rollout of its controversial cloud services program even though the requirements of the $10 billion contract are still being challenged in court by Oracle Corp.Dana Deasy, the Pentagon’s chief information officer, asked department leaders for recommendations about how they plan to use the contract and told them not to initiate any other cloud agreements without his consent, according to a copy of the memo obtained by Bloomberg News.Deasy sent the memo dated May 20 to a wide range of Pentagon officials outlining guidance for the “fourth estate” -- the Defense Department agencies that provide human resources, services contracting and other support services to the military -- to identify technology programs that could be transitioned to the Joint Enterprise Defense Infrastructure cloud, or JEDI, and to a preexisting cloud program called milCloud 2.0.The memo sheds insight on how the Defense Department is moving ahead with implementation of the JEDI cloud program even while a legal dispute raises questions about the contract’s terms. Asked whether the Pentagon’s choice for the JEDI award is contingent on a decision in the Oracle lawsuit, Deasy told a group of reporters at a breakfast on Tuesday that “they are two disconnected events.”He added that the JEDI award will likely be decided “sometime toward the end of August.”Deasy’s memo also said that departments that have already gained approval to migrate data to other computing storage centers may continue, but must “evaluate JEDI as the General Purpose cloud solution at the end of the period of performance.” The memo also contained a list of more than 50 expected data center closings. The Defense Department has said JEDI should become the department’s general-purpose cloud to store the “majority of systems and applications.Defense Department spokeswoman Elissa Smith confirmed the authenticity of the memo and added that the Air Force, Army, and Navy have also “begun identifying and prioritizing programs and migrations to JEDI.”Deasy said Tuesday that over the last six months his team has contacted U.S. regional commanders, such as the U.S. Central Command, for a series of “cloud-awareness sessions.”“There is a significant amount of pent-up demand just waiting to use the capability once it comes online,” Deasy said. The U.S. Transportation Command that’s in charge of maritime, aviation and land transport has developed a set of tasks they want to migrate to the Jedi Cloud “as soon as that contract is awarded.”Contested ContractThe contract has been contested by Oracle, which the Pentagon eliminated from the bidding in April along with International Business Machines Corp. for not meeting minimum criteria. That move left Amazon.com Inc. and Microsoft Corp. as the last remaining competitors.Oracle filed a lawsuit in December in the U.S. Court of Federal Claims alleging that the Pentagon crafted overly narrow contract requirements and failed to investigate relationships between former Defense Department employees and Amazon. In May, Oracle filed an amended complaint alleging that Amazon offered two former Pentagon employees jobs while they were working on the contract.The Government Accountability Office and an internal Pentagon investigation determined the conflict of interest allegations didn’t compromise the integrity of the procurement. Oral arguments in the court case are expected to occur in July.(Adds that a lawsuit raises questions about the contract's terms in fourth paragrah. The full name of JEDI was corrected in a previous version of the story.)To contact the reporters on this story: Naomi Nix in Washington at firstname.lastname@example.org;Tony Capaccio in Washington at email@example.comTo contact the editors responsible for this story: Sara Forden at firstname.lastname@example.org, Larry LiebertFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Trade-war is taking a toll on technology stocks' financial performance as the companies lose out on significant business opportunities.
(Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.For years, companies like Oracle and International Business Machines invested heavily to build new markets in China for their industry-leading databases. Now, boosted in part by escalating U.S. tensions, one Chinese upstart is stepping in, winning over tech giants, startups and financial institutions to its enterprise software.Beijing-based PingCAP already counts more than 300 Chinese customers. Many, including food delivery giant Meituan, its bike-sharing service Mobike, video streaming site iQIYI Inc. and smartphone maker Xiaomi Corp. are migrating away from Oracle and IBM’s services toward PingCAP’s, encapsulating a nation’s resurgent desire to Buy China.PingCAP’s ascendancy comes as the U.S. cuts Huawei Technologies Co. off from key technology, sending chills through the country’s largest entities while raising questions about the security of foreign-made products. That’s a key concern as Chinese companies modernize systems in every industry from finance and manufacturing to healthcare by connecting them to the internet.“A lot of firms that used to resort to Oracle or IBM thought replacing them was a distant milestone, they never thought it would happen tomorrow,” said Huang Dongxu, PingCAP’s co-founder and chief technology officer. “But now they are looking at plan B very seriously.” IBM, which gets over a fifth of its revenue from Asia, declined to comment. Oracle, which gets about 16%, didn’t respond to requests for comment.China has long tried to replace foreign with homegrown technology, particularly in sensitive hardware -- it imports more semiconductors than oil. That imperative has birthed global names like Huawei and Oppo and even carried over into software in recent years, as Alibaba Group Holding Ltd. and Tencent Holdings Ltd. expand into cloud services. That effort has gained urgency since Washington and Beijing began to square off over technology.“China has always wanted to use domestic tech and in areas like cloud, it’s been very successful,” said Julia Pan, a Shanghai-based analyst with UOB Kay Hian. “While it wants to use Chinese chips, its technology is just not there, but when it’s mature enough, they very likely will replace overseas chips with domestic ones.”Now, a coterie of up-and-coming startups are encouraging Chinese firms to go local. Customers use PingCAP to manage databases and improve efficiency, allowing them to store and locate data on everything from online banking transactions to the location of food delivery personnel.Backed by Matrix Partners China and Morningside Venture Capital, PingCAP is competing in a sector traditionally dominated by companies such as Oracle and IBM. The market is expected to grow an average 8% annually to $63 billion globally in the seven years through 2022.The startup is one of the newest members of a cohort of open-source database providers such as PostgreSQL and SQLite that are upending the market. Researcher Gartner forecasts that 70% of new, in-house applications worldwide will be developed on open-source database management systems by 2022.PingCAP -- mashing the term for verifying a web connection, ping, and the CAP computing theorem -- was founded by three programmers whose former employer, a mobile-apps company, was acquired by Alibaba. Inspired by Google’s Cloud Spanner, which pioneered the distributed database model, the trio -- Huang, Liu Qi and Cui Qiu -- began creating an open-source database management system that would allow companies to infinitely expand their data storage by simply linking more servers to existing ones.“Think of traditional database mangers like a fixed glass container, every time you run out of storage you have to get a bigger one,” said Huang. “What our system does is that you can link as many cups together as you want.”Their idea caught on with investors and venture fund hot shots including Matrix agreed to invest about 10 million yuan ($1.4 million) in 2015. To date the company has raised more than $71 million and has about 190 employees.PingCAP is working in a space where competition is fierce -- its database TiDB currently only ranks 121 among global peers, according to database rank compiler DB-Engines, which uses mostly mentions on social media and discussion forums as key metrics. Other open-source database managers such as PostgreSQL ranks 4th and its direct competitor CockroachDB, which also focuses on distributed database systems, leads PingCAP by 30 spots. The Chinese startup also operates in a market where it’s difficult to make money -- PingCAP only has a couple dozen paying customers in China and makes about 10 million yuan in revenue a year. Their best shot is to create successes that can be later replicated on a larger scale, said Owen Chen, an analyst with Gartner. “Work with the 10% early adopters free of charge, and make money off the 90% followers later,” he said.That’s why Huang is working with big names like the Bank of Beijing and Mobike -- so it can create templates for each sector. “Only one thing is certain, data will continue exploding,” said Richard Liu, a founding partner at Morningside Venture Capital. “We have the patience to wait before they figure out the best revenue model.”PingCAP has one thing going for it: Chinese customers are increasingly willing to experiment with technology. Data supplied by some 2,000 companies -- more than 300 in-production users and 1,500 who are testing its system -- will provide PingCAP with what Matrix Partner Kevin Xiong says is akin to a supply of ammunition.“You need bullets to train someone to become a stellar marksman, and PingCAP right now has a lot of bullets,” said Xiong, who invested in the company.Huang points to how PingCAP’s database helped tide over Chinese bike-sharing giant Mobike during stressful days when user and transaction numbers exploded on a daily basis -- at its peak in 2017 the company said it handled as many as 30 million rides a day.“It was a really challenging time for us, and [open-source database] MySQL was no longer able to meet our demands given the jump in data volume,” said Li Kai, a senior tech director at Mobike. “PingCAP really helped us big time.”Huang and his team also made it easy for IT departments to jump ship. With one key stroke, companies could export their entire database on MySQL over to PingCAP’s. Some are considering moving their most sensitive data including transactions and customer info over, Huang said without disclosing names.Yu Zhenhua, an IT manager at Bank of Beijing, said China is constantly trying to enhance information security while his industry wants to lower costs as it rapidly expands. “TiDB’s service meets the demands of what we want in a distributed database manager,” Yu said in a statement posted on PingCAP’s website. A representative for the lender didn’t respond to emailed queries about its collaboration.Longer term, PingCAP wants to venture beyond China -- but there, the geopolitical spat is proving an impediment. Earlier this year, PingCAP was ready to embark on an expansion into the U.S. and said it was already in discussions for getting some prominent tech startups to use its software. Now the prospects of winning over American clients are clouded.“We’re not seeing any immediate impact on our business in the U.S. but the trade war does force us to look at the long term uncertainties of getting important U.S. clients in finance or tech to move to our platform,” Huang said.\--With assistance from Olivia Carville, Nico Grant, Lucas Shaw and Gao Yuan.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Colum Murphy, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
REDWOOD SHORES, Calif. and JACKSONVILLE, Fla., June 24, 2019 -- Stein Mart, a national specialty off-price retailer, has gained a holistic view of its inventory and a more.
Of the 33 analysts covering Oracle (ORCL), eight have rated the stock as a “buy,” while 21 have rated it as a “hold.” Four analysts have given the stock “sell” ratings. Analysts have set a target price of $55.68 on the stock, which implies a potential upside of 5.7%.
(Bloomberg) -- Call it the class ceiling.Women suing major technology companies for gender discrimination would have much stronger leverage against their employers if they could press their claims on behalf of a large group of female colleagues. But last year, the first two cases to reach that critical juncture -- against Microsoft Corp. and Twitter Inc. -- failed to advance as class actions.Now three women at Oracle Corp. are trying to persuade a state court to let them represent more than 4,000 peers in a case claiming that the database giant pays men better for doing the same jobs, in violation of California’s Equal Pay Act. They were to make their case Friday, but the judge postponed it to September after a brief hearing.It won’t be easy because the U.S. Supreme Court set a high bar for employment discrimination cases to win class-action status in a 2011 decision that blocked 1.5 million female workers at Walmart Inc. from pursuing their gender-bias claims as a group. The barriers imposed by the high court played into the Twitter and Microsoft rulings, both of which are being appealed.The case against Oracle was filed by former company engineer Sue Petersen and two other women, all of whom worked at PeopleSoft Corp. before it was acquired by Oracle in 2005.The women allege that Oracle for years has paid women less than men for “substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions.” To bolster their bid for class-action status, the plaintiffs emphasize that company-wide compensation is determined at Oracle’s headquarters in Redwood Shores, California.Wrong ComparisonOracle contends the lawsuit wrongly compares women and men tagged with the same job codes even though such coding doesn’t mean the work requires similar skills, effort or responsibility, because Oracle’s products and services vary so widely.Relying on the codes doesn’t “account for the tools or programming languages an employee must master, the hours her work requires, or the number and complexity of the sub-areas of a product for which she is responsible,” the company said in a court filing.Dorian Daley, Oracle executive vice president and general counsel, said in an emailed statement that the lawsuit was “meritless,” based on false allegations and relies “on cherry picked statistics rather than reality. We fiercely disagree with the spurious claims and will continue in the process to prove them false. We are in compliance with our regulatory obligations, committed to equality, and proud of our employees.”Oracle is also fighting a case over gender-pay disparities brought by the U.S. Labor Department in the waning days of the Obama administration.The case is Jewett v. Oracle America Inc., 17-CIV-02669, California Superior Court, County of San Mateo (Redwood City).(Updates with Oracle statement.)\--With assistance from Nico Grant and Robert Burnson.To contact the reporters on this story: Peter Blumberg in San Francisco at email@example.com;Joel Rosenblatt in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: David Glovin at email@example.com, Steve Stroth, Joe SchneiderFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Business database management giant Oracle (ORCL) has been struggling to grow in recent years as customers opt to keep their data on the cloud instead.
Oracle (ORCL) has strong cash flows, and it regularly uses those cash flows for share buybacks and dividend payments. In the fourth quarter of fiscal 2019, Oracle’s cash and cash equivalents were $20.5 billion.
The growing adoption of cloud services technology, which enables a user to store and share data such as applications, files, and more to remote locations, has pushed Oracle (ORCL) to focus more on its cloud business.
Software company Oracle (ORCL) posted revenue of nearly $11.14 billion in the fourth quarter of fiscal 2019. Its revenue not only exceeded analysts' estimate by 1.9% but also rose 1% YoY (year-over-year) in the quarter, marking its first YoY increase since the first quarter of fiscal 2019.
The stock of software and cloud services giant Oracle (ORCL) rose as much as 7% and ended the day up 4.54% in extended trading on June 19 after reporting better-than-expected fiscal 2019 fourth-quarter earnings results.
It's latest earnings report shows the cloud-based software company isn't setting the world on fire, but that’s OK.
Oracle (ORCL) to benefit from the ongoing cloud-based momentum. Also, new database will improve Oracle's competitive position in the cloud against Amazon Web Services.
This morning the US stock market opened on a strong bullish note after the Federal Reserve hinted at a cut in interest rates yesterday. Also, renewed US-China trade optimism helped the S&P 500 Index reach new heights today. The world’s two largest economies have started trade negotiations once again ahead of US President Donald Trump and Chinese President Xi Jinping’s meeting next week.