Will Oracle’s cloud growth continue to drive its success?
- Oracle stock has rallied 40% this year
- Oracle Cloud Infrastructure (OCI) is competing with Amazon Web Services, Microsoft Azure, and Google Cloud
- Integration of Cerner is causing disruption in Oracle’s business
- Oracle’s November quarter financial results will provide more visibility on these factors
- Consensus estimates for the quarter call for revenue of $13.1 billion
- Oracle’s projected total cloud revenue excluding Cerner is 29% to 31%
- Analysts have mixed expectations for the quarter
Oracle shares have surged 40% this year, largely due to the rapid growth of its cloud computing business, OCI. While OCI has successfully entered the competitive cloud market, Oracle is facing challenges in integrating Cerner, an acquired healthcare company. This integration has caused disruptions and put pressure on Oracle’s overall growth rate. The upcoming November quarter financial results will shed more light on the impact of these factors. Analysts expect revenue of $13.1 billion and project total cloud revenue, excluding Cerner, to be between 29% and 31%. However, opinions are mixed, with some analysts anticipating strength in OCI and others highlighting potential weakness in apps. Investors will closely watch these results to gauge Oracle’s future performance.
Public Companies: Oracle (ORCL), Amazon Web Services (undefined), Microsoft Azure (undefined), Google Cloud (undefined)
Private Companies: Cerner
Key People: Tyler Radke (Citi analyst), Derrick Wood (TD Cowen analyst), Eric J. Savitz (Writer)
Factuality Level: 7
Justification: The article provides information about Oracle’s financial results and the growth of its cloud computing business. It mentions the struggles with integrating Cerner and the impact on Oracle’s overall growth rate. The article also includes consensus estimates for the quarter and projections for future revenue and profit. The opinions of analysts are included as well. Overall, the article provides factual information with some opinions from analysts.
Noise Level: 3
Justification: The article provides a brief overview of Oracle’s financial results and the impact of its cloud computing business and the integration of Cerner. It includes some estimates and analyst opinions. However, it lacks in-depth analysis, evidence, and actionable insights. The article stays on topic and does not dive into unrelated territories, but it could provide more context and data to support its claims.
Financial Relevance: Yes
Financial Markets Impacted: Oracle’s financial results may impact the stock market and investor sentiment towards the company.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses Oracle’s financial results and the performance of its cloud computing business, but there is no mention of any extreme events or their impact.
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