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magazineOracle shares up more than 40% in three months
Texan software and data analytics business Oracle (ORCL:NASDAQ) has been shooting the lights out for a year or more, and investors have begun to cotton on, with the stock surging 40%-plus since September 2022.
The company has seen a run of upgrades after beating Wall Street estimates, most recently in its latest quarter (to 30 November). Revenues and earnings of $12.3 billion and $1.21 per share comfortably trumped estimates of $11.95 billion and $1.16, respectively.
Oracle continues to make significant progress in shifting more of its business to the cloud, prompting analysts at US broker Piper Sandler to flag the ‘improving risk-reward’ on its cloud business, which has ‘warranted a wholesale rethink’ of the group.
Oracle’s performance in cloud services and licence-backed software surprised on the upside, reflecting growing demand from both large enterprises and government agencies. The company has seen a strong showing from its Cerner digital health records unit.
It recently shared $9 billion of revenue with Alphabet (GOOG:NASDAQ), Amazon (AMZN:NASDAQ) and Microsoft (NSFT:NASDAQ) to provide the US Defense Department with its Joint Warfighting Cloud Capability, with the work to completed by 2028.
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Issue contents
Case study
Editor's View
Feature
Great Ideas
News
- The case for a big rebound in growth stocks in 2023
- Vodafone stock at 25-year low as attention turns to cutting debt
- Oracle shares up more than 40% in three months
- Yet more evidence that the computer games industry has lost its pandemic mojo
- Why shares rallied on a stronger-than-expected US jobs number
- What do Next’s results tell us about the outlook for the retail sector?
