Oracle: Profitability is the Focus
Oracle (NASDAQ:ORCL) has time and again re-iterated its emphasis on profitability. Oracle acquired Sun Microsystems in early 2010 with a view to strengthen its portfolio of products. Sun was a loss making company at that time, and reported an operating income loss of $2.24 billion for fiscal year ended 2009.  This is why Oracle could buy Sun Microsystems at a relatively cheap valuation of $7.4 billion. However, Oracle seems to have converted the losses incurred by Sun Microsystems to profits. By leveraging Sun’s technology, Oracle is trying to come up with a superior product portfolio and maintain an edge over competitors SAP (NYSE:SAP), Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM) and HP (NYSE:HPQ).
We maintain a $37.94 price estimate for Oracle stock, which stands about 15% above the stock’s market price.
Oracle Improving Profitability
In its acquisition of Sun Microsytems, Oracle primarily acquired hardware products like servers and storage products. According toComplete Story »