Uncertain Acquisition Deal Clouds Oracle’s Future Outlook– Short Positions Suggested

Oracle Corporation is scheduled to release its first-quarter financial results for fiscal year 2017 after the market closes on Thursday. The company is expected to report an EPS of 58 cents per share on adjusted earnings and revenues of $ 8.7 billion, compared to $8.5 billion last year.

Oracle has been on a path of progress towards transitioning to cloud based products and services. The company is focusing on a deal to acquire San Mateo- based software company NetSuite at the price of $9.3 billion. The acquisition is needed for Oracle to bolster sales of cloud-based tools to compensate for declining traditional hardware and software license revenues.

Oracle has reported five straight quarters of declining sales and is being left behind in the competition with cloud software vendors such as Salesforce.com and Workday.

Trade suggestion

Sell Stop at 40.20, Take profit at 40.00, Stop loss at 40.50

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