Oracleis due to release third-quarter earnings Tuesday after suffering its worst quarter in nine years in the previous quarter. Despite this, shares of the world’s biggest maker of database software are holding at near $30 so far this month.
RBC Capital’s Robert Breza told CNBC the stock is still a “hold,” even though Oracle is in need of growth. Breza said its acquisition of Taleo , as well as recent release of its Fusion applications are steps in the right direction.
“Oracle’s starting to accelerate their investments” in software and service, Breza said.
Oracle blames its November tumble on a weak economy, which caused prospective buyers to delay their purchases. It also faces competition from long-time rival SAP and newcomers Salesforce.comand privarely held Workday.
One large stumbling block for Oracle is that it has lost key partners in business when it began producing hardware as well as software. International Business Machines and Hewlett-Packard, which once would promote Oracle’s software products, are now competitors.Page 1 of 3 | Next Page