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UPDATE 2-Oracle's cloud business miss sends shares lower

UPDATE 2-Oracle's cloud business miss sends shares lower
From Reuters - December 14, 2017

(Reuters) - Oracle Corp (ORCL.N) missed analysts estimate for cloud revenue in its second quarter, sending the companys shares about 7 percent lower in extended trading and raising worries over the pace of the business makers transition.

The companys shares, up nearly 31 percent this year, were trading at $46.94 on Thursday.

Revenue in the companys cloud-based business rose 44 percent to $1.52 billion in the second quarter, but fell short of the $1.56 billion analysts had expected, according to Thomson Reuters data.

Oracle has largely made the transition on SaaS but still have a lot of work ahead on transitioning the database business to the cloud, said Wedbush analyst Steve Koenig.

A late entrant into the rapidly growing cloud-based software business, Oracle has aggressively stepped up efforts to bridge the gap with rivals such as Amazon.com Inc (AMZN.O), Microsoft Corp (MSFT.O) and Salesforce.com Inc (CRM.N).

Oracle is also building up its cloud business through acquisitions such as its purchase of NetSuite Inc for $9.3 billion last year.

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