Oracle Falls Short On Revenue But AI Cloud Contracts Promise A Long-Term Growth Story
Portfolio Pulse from Upwallstreet
Oracle Corporation's fiscal first quarter revenue and guidance fell short of expectations, causing shares to drop 9% in extended trading. Despite being smaller than competitors Amazon, Microsoft, and Google, Oracle announced contracts with AI development companies. Oracle's cloud infrastructure revenue grew 66%, and the company signed contracts with AI companies for more than $4 billion of capacity in its Gen2 Cloud. Tesla's AI startup, xAI, will be using Oracle's cloud services.
September 12, 2023 | 1:17 pm
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NEGATIVE IMPACT
Oracle's Q1 revenue and guidance fell short, causing a drop in share price. However, new contracts with AI companies and growth in cloud infrastructure revenue may promise future growth.
Oracle's lower than expected Q1 results and guidance have negatively impacted its stock price. However, its new contracts with AI companies and growth in cloud infrastructure revenue could potentially drive future growth.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Oracle, a smaller competitor to Amazon in the cloud services market, announced growth and new contracts in this area.
Oracle's announcement of growth in cloud services and new contracts could potentially impact Amazon, a larger player in this market. However, the direct impact on Amazon is unclear.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Oracle, a smaller competitor to Microsoft in the cloud services market, announced growth and new contracts in this area.
Oracle's announcement of growth in cloud services and new contracts could potentially impact Microsoft, a larger player in this market. However, the direct impact on Microsoft is unclear.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Tesla's AI startup, xAI, will be using Oracle's cloud services.
Tesla's AI startup, xAI, will be using Oracle's cloud services. This could potentially impact Tesla's operations, but the direct impact on Tesla's stock price is unclear.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70