ORCL Stock Surges as Cloud Computing Bookings Soar

By Patricia Miller


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Oracle Corp. (ORCL stock) surpasses expectations with strong cloud bookings and revenue growth, making it a potentially attractive investment for retail investors.

Laptop computer displaying logo of Oracle Corporation.
ORCL Stock: Oracle's Focus on Cloud Infrastructure Paying Off

What You Need To Know

Oracle Corp (NYSE: ORCL) reported a spike in bookings in its cloud computing business, leading to a significant rise in its stock. The company's remaining performance obligation, a measure of sales backlog, was $80 billion, surpassing analyst expectations. CEO Safra Catz credited this figure to large new cloud infrastructure contracts signed in the quarter.

Oracle is focused on expanding its cloud infrastructure business to compete with major players like Amazon (NYSE: AMZN), Microsoft (NYSE: MSFT), and Google (NYSE: GOOGL). Cloud revenue increased 25% to $5.1 billion, beating estimates, with $1.8 billion coming from renting computing power and storage and $3.3 billion from applications. Total sales in the fiscal third quarter increased 7.1% to $13.3 billion.

Since acquiring Cerner, Oracle is focused on modernizing its legacy software business and aims for high growth in its health operations. The company will continue investing in building more data centers, with estimated capital expenditures reaching $10 billion by fiscal 2025.

Why This Is Important for Retail Investors

  1. Potential for Stock Growth: Oracle's surging ORCL stock price highlights the company's success in the competitive cloud computing market. This growth indicates a positive trajectory for the company's financial performance, which may attract retail investors seeking stocks with potential for capital appreciation.

  2. Positive Revenue and Sales Results: Oracle's strong financial results, including higher cloud revenue and total sales, demonstrate the company's ability to generate revenue and drive growth. This can instill confidence in retail investors looking for companies with a solid track record of financial success.

  3. Competitive Market Position: Oracle's focus on expanding its cloud infrastructure business to compete with tech giants like Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL) underscores its commitment to staying relevant in a rapidly evolving industry. Retail investors may find this attractive as it suggests Oracle's ability to capture market share and remain competitive in the long term.

  4. Modernization Efforts: The company's focus on modernizing its legacy software business, particularly with the acquisition of Cerner, indicates its commitment to adapting to changing customer demands and industry trends. Retail investors may view this as a positive sign of Oracle's ability to innovate and meet evolving market needs.

  5. Future Growth Potential: Oracle's investments in building more data centers to meet the growing demand for cloud computing demonstrate its forward-thinking approach and anticipation of future growth. This can be significant for retail investors seeking opportunities in a sector that is expected to witness continued expansion and technological advancements.

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This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

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