Cerner may be dragging down Oracle's stock price as the software giant incorporates the EHR vendor into its portfolio, Yahoo Finance reported.
Oracle acquired Cerner in 2022 for more than $28 billion. After an initial bump from the move, it has since posed hurdles, including the troubled EHR rollout at the U.S. Department of Veterans Affairs, according to the Oct. 23 story. Oracle's stock price has fallen 5% since its latest earnings report in September.
"Integrating Cerner will be another challenge for the company — it is transitioning revenue from licensing to a cloud-based subscription model, which can cause some choppiness," Laffer Tengler securities analyst Jamie Meyers told the news outlet.
The article predicts Oracle's health and artificial intelligence investments will eventually pay off — "it's more of a question of when and execution."