Oracle (ORCL) closed at $129.59 on October 19 and is down 27% over six months. The article argues its database business has a durable moat, since migrating a production database is costly and slow, and the segment earns a 35.63% operating margin and 41.19% return on equity. Its computing capacity rental business is more exposed: customers can switch providers, it competes with three of the largest technology companies, and it requires heavy spending, with borrowings at 251.72% of equity. Revenue rose 29.60% in the latest quarter, while the stock trades at 17.76 times expected next-year earnings. The article frames the gap as either a market misjudgment of how much of the old moat carries into the new business, or a sign that the new business has no moat.
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