Part 2/7:
Gil Lura, a senior software analyst at Da Davidson, provides insight into Oracle's current state. He expressed that Oracle has been promising to achieve double-digit revenue growth for some time. However, despite these assurances, the company has continued to report single-digit growth rates. A significant aspect of Oracle's business model involves a transition to cloud services, but presently, about 60% of its revenue still stems from traditional offerings that are declining.
Furthermore, Lura noted that Oracle's capital expenditures (capex) are set to double this year, amounting to over 25% of their revenue. This heavy investment underscores a strong commitment to scaling operations but raises concerns as it has yet to yield the expected acceleration in revenue growth.