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What’s Moving Oracle Corporation Stock Lower Today?

JPM stock fell about 1.6% on Thursday

By Karl Utermohlen, InvestorPlace Writer


Oracle Corporation (NYSE:ORCL) shares were dropping on Thursday as the company received a downgrade from a group of JP Morgan Chase & Co. (NYSE:JPM) analysts.

Oracle CorporationThe downgrade was caused by the company losing favor among technology buyers as other leading cloud computing vendors are gaining ground in the industry, according to a note from the financial institution. The firm decreased Oracle’s rating to neutral from overweight for its shares, citing negative results amassed from a spending survey of chief information officers.

JP Morgan wrote that Oracle’s “specific metrics in our large-scale CIO survey have arced over into negative territory, which makes us uncomfortable because the results of our CIO surveys over the years have been highly predictive,” according to analyst Mark Murphy in a note to clients Thursday.

“Oracle spending intentions have only looked lukewarm in our CIO survey work in the recent past, but the data takes a dive in the current survey. … In our discussions, CIOs have clarified that they are migrating Oracle databases to Microsoft SQL Server, Amazon databases and PostgreSQL.”

The firm’s survey of 154 chief information officers revealed that Oracle received the most indications for “spending contraction” this year.

ORCL stock was down about 5.4% on Thursday following the firm’s note, while JPM shares were sliding just below 1.6% by day’s end.

Article printed from InvestorPlace Media, https://investorplace.com/2018/06/oracle-corporation-orcl-3/.

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