Back in August, I compared IBM (NYSE: IBM) and Oracle (NYSE: ORCL), two aging tech companies that had both been expanding their higher-growth cloud businesses to offset the slower growth of their legacy businesses.
At the time, I favored IBM over Oracle for its higher yield, lower valuation, and growth opportunities under its new CEO, Arvind Krishna. But since then, IBM’s stock has dipped about 4% while Oracle’s stock rallied more than 25%.
Did I overlook some of Oracle’s strengths, or will Big Blue bounce back next year and beat the database software provider? Let’s take a fresh look at both companies to find out.