Tag: Oracle

Pricing Power in 2H 2023 and 2024

Pricing Power in 2H 2023 and 2024

As I think about Technology companies in the back half of 2023 and 2024, pricing power has to erode at some point. For companies such as Google, subscription price increases this calendar year have far outpaced revenue growth (higher prices, fewer unit sales). I imagine that many companies that exercised pricing power in 2021, 2022 … Continue reading Pricing Power in 2H 2023 and 2024

The Full Promise of Large Language Models

The Full Promise of Large Language Models

The full promise of Large Language Models (LLMs) won't be delivered until LLMs are capable of understanding nuanced industry specific commercial data. Until such time, LLMs will be productivity enhancers (think Google Assistant), capable of automating routine tasks but incapable of operating complex processes. In order for the above to happen, LLMs will need to … Continue reading The Full Promise of Large Language Models

Putting AI In Perspective

Putting AI In Perspective

I've long argued that Google is the AI King. Here's Why. Mobile. There are only 2 mobile operating systems that matter: Android (72% share) and iOS (28%) share. Therefore, when users interact with their phones through voice, they are primarily using Google's natural language AI (Google Assistant) or Apple's natural language AI (Siri). Nowhere to … Continue reading Putting AI In Perspective

Technology Stocks Are Not Yet In The Clear

Technology Stocks Are Not Yet In The Clear

The NASDAQ Composite has had a nice little run, up more than 9% year-to-date. However, I would exercise caution ahead of Tech earnings and the Fed's January 31st / February 1st FOMC meeting. We have written on numerous occasions that we expect management teams to take a conservative approach to 2023 Revenue and EPS guidance. … Continue reading Technology Stocks Are Not Yet In The Clear

A Salesforce Sale?

A Salesforce Sale?

Back in December I wrote that Oracle (ORCL) should acquire Salesforce (CRM). Activist investor Elliott Management may force a CRM sale, Oracle is the natural acquirer in our view. Salesforce has not had an operator at the helm capable of driving operating margin expansion since Keith Block left his co-CEO post in February 2020. Salesforce … Continue reading A Salesforce Sale?

Technology Leaders Will Gain Share

Technology Leaders Will Gain Share

Past recessions have taught us that leading Technology companies typically gain marketshare during down economies. I would expect this economic down period to be no different. Good news for Amazon (AMZN), Microsoft (MSFT), and others. Amazon (AMZN) and Microsoft (MSFT): Amazon's AWS unit and Microsoft's Azure unit will be mixed bags: Usage: Usage - and … Continue reading Technology Leaders Will Gain Share

CEO Succession. Oracle and Carlyle Group.

CEO Succession. Oracle and Carlyle Group.

Succession is never easy, particularly at firms where the Founder/CEO is still active on the Board. CEO succession is difficult for firms across industries, particularly when a given firm is looking to name a successor to the Founder CEO. Oracle and Carlyle Group have had different succession experiences. Oracle (ticker: ORCL) comes to mind as … Continue reading CEO Succession. Oracle and Carlyle Group.

Amazon’s One Medical Acquisition – Analysts Are Missing The Boat

Amazon’s One Medical Acquisition – Analysts Are Missing The Boat

Amazon (ticker: AMZN), announced that it plans to acquire healthcare provider One Medical (ticker: ONEM), for approximately $3.9 billion. Some of the analysis we have seen misses the big picture. One Medical has approximately 180 clinics: Amazon could incorporate additional clinics into its Whole Foods and Amazon Fresh locations, thereby growing the number of consumer … Continue reading Amazon’s One Medical Acquisition – Analysts Are Missing The Boat