Oracle profit beats the street, Nvidia joint announcement
Oracle, all-sessions, set to jump after the cloud services giant beat quarterly profit estimates. IG financial analyst @AngelineOng explains why a highly anticipated announcement with Nvidia is also fueling Oracle’s share rise.
(AI Video Summary)
Oracle
Oracle, a technology company, saw its shares rise by 16% in after-hours trading, adding more than $40 billion to its stock market value. The company's earnings and sales were on target, with earnings increasing by 16% to $1.41 per share, exceeding expectations. Additionally, revenues reached $13.28 billion. However, the company's revenue growth forecast fell short of analyst estimates, projecting a range of 4% to 6% versus the average estimate of around 6.5%.
NVIDIA
What has really caught the attention of the market is Oracle's recent conference call, where they discussed a joint announcement with NVIDIA, another tech company, that will be made in the coming weeks. This news has generated excitement among investors, contributing to the rise in Oracle's stock. Furthermore, Oracle has been able to secure new business during the quarter, as shown by a 29% increase in remaining performance obligations, which is a measure of book revenue.
Gen2 AI infrastructure
Despite Oracle's efforts to open new and expand existing cloud data centers, there is still high demand for its Gen2 AI infrastructure. In other words, there are more customers wanting their AI services than Oracle can currently supply, indicating a strong interest in Oracle's AI offerings, there was a significant increase in the previous session, indicating positive market sentiment. This positive trend continued throughout the trading session, as shown by a series of green candles on the hourly chart. These green candles represent positive price movement and suggest that the market is reacting favorably to Oracle's performance.
Overall, Oracle's impressive earnings report, coupled with the anticipation of a joint announcement with NVIDIA and strong demand for its AI infrastructure, have contributed to the rise in its stock value. Investors are hopeful about Oracle's future prospects, which is reflected in the positive market sentiment.
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