Oracle shares reach record high as it smashes earnings estimates
Shares in software giant Oracle stormed to a record high last night, all-sessions on the IG platform, after the company left earnings estimates in the dust.
The 78-year old veteran founder, chairman and chief technology officer Larry Ellison, who still owns 40% of the business, looking younger than ever, wowed Wall Street. The company's top source of revenue, cloud services and license support, jumped 23% to $9.37 billion. Revenue from cloud infrastructure climbed an eye-watering 76% to $1.4 billion, according to CNBC, expanding faster than rivals such as Microsoft and Google, despite being much smaller. During the quarter, Oracle said more of its cloud services had been approved by US defence and intelligence agencies.
(Video Transcript)
Oracle shares soar
Oracle shares soared to a record high last night after the company smashed earnings estimates and forecasts for the business.
Last night at the press conference, the software vendor announced fiscal fourth quarter (Q4) results that exceeded Wall Street's expectations. Adjusted earnings per share came in a $1.67 versus $1.58 expected on a whopping 17% climb in revenues to $13.84 billion. The company's top source of revenue, which is the cloud services and license support business, jumped 23% to $9.37 billion revenue from cloud infrastructure, climbing an eye watering 76%. It's only a small part of the business - $1.4 billion - but nonetheless, it is a big rise year-on-year (YoY).
According to CNBC, it's expanding faster than rivals such as Microsoft and Google, despite being much smaller.
Share price chart
Let's take a look at the chart and you can see in one easy, quick-to-understand move that we've got this move up that we've seen all the way up to $120.70. During the quarter, Oracle said more of its cloud services had been approved by US defence and intelligence agencies, and that is an expanding sector, excluding the after-hours move. Oracle shares climbed almost 43% so far this year, while the S&P 500 index is up around about 13% over the same period. But whichever way you look at this Oracle's all-time record high last night with one of the biggest upside candles we have seen in this stock in recent memories, and that was as a result of these earnings out last night from Oracle. It's one way stock trading.
Could be a bit of money taken off the table this morning at nine o'clock, all-sessions on the IG platform. But the broad sweep of things is it's smashed earnings estimates last night, smash forecasts, and Larry Ellison, one of the longest surviving Wall Street veterans, continues to make a ton of money out of Oracle.
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