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Oracle Corp. managed to win a fight for its acquisition of NetSuite, but that just means ever-combative founder Larry Ellison can gird for other battles.
We expect the addition of NetSuite and Dyn (not yet closed) to lift FY17 revs by $550m and FY18 revs by $1.0bn.
We see a meaningful risk that Oracle will miss 2Q consensus estimates due to adverse FX.
Although Oracle likely faces long-term challenges to its database business based on new application development shifting to AWS, we think the company has many levers to sustain its earnings power in coming quarters and years.