NEW YORK (TheStreet) -- Oracle's (ORCL) - Get Report $93 billion acquisition of software maker NetSuite (N) inches the IT service provider further into the cloud, Synovus Trust Portfolio Manager Daniel Morgan said on CNBC's Squawk Alley."
Oracle is "playing catch up" by acquiring its way into the cloud because the company was not initially "as aggressive" as competitors like Microsoft (MSFT) with its launches including Microsoft 365, Morgan explained.
"We've had a tremendous amount of acquisitions so it's definitely a hot market," he noted, commenting on the growing trend of tech mergers.
Overall, the tech sector is gaining "some buoyancy" right now, as previously it was "slightly under performing year to date compared to the S&P and the Dow," Morgan stated.
Shares of Oracle are slipping 0.1% to $40.89 and NetSuite stock is spiking 18.02% to $108.07 this afternoon.
Separately, TheStreet Ratings rated Oracle as a "buy" with a score of B+.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, solid stock price performance, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. TheStreet Ratings feels its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: ORCL
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.