I have been mulling over Jeff's recent Options service recommendation to buy MSFT long calls, and to me the case for MSFT looks pretty compelling. I purchased $80 2021 LEAP calls at the end of the day today.I am no expert but glancing at the earnings report numbers today it seems like MSFT has better future prospects than Oracle. I have been mulling over whether to get back into Oracle at some point given today's drop and wondered whether others have any thoughts on ORCL. Right now I am inclined to stick with MSFT for the money I previously allocated to ORCL. I also would be curious if the Pro team has considered adding MSFT to the Pro portfolio.
Not fan of ORCL at all, but have followed the PRO rec til now. Selling in the new year as I have a large amount of cap gain already locked in for 2018. MSFT seems like a good fit here to me as well.
Little bit ago (say June/July), I revisited my thoughts on ORCL. Essentially, my personal reason for being in ORCL was the growth of the cloud and the need of data storage and organization (i.e. database) associated with all the cloud applications. I found I did not believe ORCL was showing progress to justify such a thesis. They still have a plenty of legacy installs that will be relevant and critical for years -- but I no longer accepted the thesis that they would reach such a strong position in the cloud.So I sold and bought MDB. MDB may not be the winner. Heck, there may not be *one* winner. I do think, however, that they better fit the the thesis and have shown more progress towards that thesis.MDB certainly is more volatile - so I wouldn't say it is a replacement for ORCL in any and all portfolios. Rather, it depends on one's thesis.I might also agree that MSFT has demonstrated more progress than ORCL against a thesis of cloud services. What's your reasons for ORCL? MSFT?I can make no comment on Pro's thoughts on the comparisons. Best-SirGhost
Sir Ghost-Good to see you on the Pro boards.For MSFT - my bullish thesis - I am still reading and learning about it but so far:Wide economic moat -> high switching costs and subscription based revenue model(Office, Office 365, Dynamics, LinkedIn), network effects (Office, LinkedIn, Office, and GitHub), and cost advantages (Azure)Azure is #2 cloud provider gaining on Amazon AWS - many businesses prefer Azure over Amazon web services because they fear giving their data to Amazon. Need for cloud will only expand.Satya Nadella CEO seems talented and very engaged.Huge cash flow and hugh pile of cash to deploy.Here's link to Jeff's recommendation on Options.https://www.fool.com/premium/options/coverage/50/coverage/al...
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