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Oracle's Cloud and AI Growth


June 12, 2024 2:46 PM

Oracle Corporation {{ m-tag option="price" ticker="ORCL" currency="USD" }} is emerging as a critical player in the technology sector, particularly in cloud computing and artificial intelligence (AI). Despite a recent earnings miss, the company's stock has shown resilience, driven by strategic partnerships and robust growth prospects in cloud services.

Cloud Growth

Oracle reported fiscal 2024 Q4 revenues of $14.3 billion, a 3% YoY increase, with cloud services and license support revenues up 12% in USD. The company's adjusted earnings per share (EPS) were $1.63, slightly missing analysts' estimates by $0.02. Despite this, Oracle's shares rose due to impressive bookings and strategic cloud partnerships​​.

Partnerships of AI and Cloud Expansion

Oracle has secured significant cloud infrastructure deals with tech giants like Microsoft, OpenAI, and Google Cloud. These partnerships are pivotal, enhancing Oracle's competitive edge in the AI and cloud markets. The company's remaining performance obligations surged 44% to $98 billion, showcasing future solid revenue potential​.

The 12-month price target is $136.54, signalling a potential upside of over 10% from the current price. Oracle's stock has appreciated by 17.4% since the start of the year, clearly reflecting investor optimism in its long-term growth strategy.

Future Prospects

Oracle's investment in its Gen2 cloud infrastructure and global data center expansion positions it well to capitalize on the growing demand for AI-driven solutions. The company's cloud business is projected to continue its rapid growth, driven by the increasing need for robust enterprise cloud services.

The information on is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.


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