Cloud major Oracle is in for some tough times ahead as Microsoft and Google are fast eating into its core tech and Cloud businesses, JPMorgan analysts have said. According to a report on Fox Business on Thursday, JPMorgan analyst Mark Murphy has downgraded Oracle to neutral from overweight based on the CIO survey results.
The news resulted in Oracle shares nosediving on Thursday.
The change in rating came after the CIO survey claimed that enterprises were "going to spend less on Oracle's products, but also that the company was becoming less critical to their IT functions".
Many of Oracle's clients are migrating to lower-cost cloud computing services offered by rivals like Alphabet (Google's parent company) and Amazon.
"Only 6.5 per cent of vendors voted for Oracle as being indispensable to their operations. At the same time, Amazon's importance to CIOs showed material improvement," said the report, citing the CIO survey findings.
In a note to clients, Murphy said that Oracle's "specific metrics in our large-scale CIO survey have arced over into negative territory, which makes us uncomfortable because the results of our CIO surveys over the years have been highly predictive".
Oracle will release its fourth quarter fiscal year 2018 results on June 19.