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Earnings Outlook: Oracle earnings: Investors are looking for something more than a white-hot stock buyback program

Oracle Corp. needs to show investors that it’s more than just a stock-buyback machine, as more and more analysts start shying away from the stock.

Oracle ORCL, +1.15% is scheduled to report fiscal third-quarter earnings after the market close on Thursday.

On Monday, Instinet analyst Christopher Eberle downgraded Oracle to a “reduce” rating from a buy on the basis that the company’s $10 billion-a-quarter in stock buybacks can’t last forever, and that the stock’s price faces a challenge when share repurchases go back to normal.

Following Oracle’s previous earnings report, analysts shared mixed views on the company, with many saying that Oracle’s earnings beat was financed by its aggressive stock-buyback program.

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