Oracle Stock Is Rising Tuesday: What's Going On?
Portfolio Pulse from Adam Eckert
Oracle Corp (NYSE:ORCL) shares rose following its fiscal third-quarter results, reporting a 7% year-over-year revenue increase to $13.3 billion, slightly missing consensus estimates but beating earnings per share estimates with $1.41. The company saw significant growth in its cloud revenues, with total cloud revenues up 25% and cloud infrastructure revenues up 49%. Oracle's CEO, Safra Catz, highlighted the demand for Oracle's Gen2 AI infrastructure and projected that 43% of the company's $80 billion Remaining Performance Obligations will be recognized as revenue over the next four quarters. Oracle also declared a quarterly cash dividend of 40 cents per share. Additionally, Oracle plans to make joint announcements with Nvidia Corp (NASDAQ:NVDA) at Nvidia’s 2024 GTC Conference. Following these results, multiple analysts raised their price targets on Oracle.
March 12, 2024 | 1:44 pm
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POSITIVE IMPACT
Oracle announced plans for joint announcements with Nvidia Corp at Nvidia’s 2024 GTC Conference, indicating a potential partnership or collaboration between the two companies.
The anticipation of joint announcements by Oracle and Nvidia suggests a collaboration that could enhance the offerings or market position of both companies, likely positively influencing Nvidia's stock in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 75
POSITIVE IMPACT
Oracle reported a 7% increase in Q3 revenue and significant growth in cloud revenues, with earnings per share of $1.41, beating estimates. The company also declared a quarterly dividend and expects strong future revenue recognition.
Oracle's better-than-expected earnings per share and strong cloud revenue growth, along with positive future revenue projections and analyst upgrades, are likely to positively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100