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Oracle (ORCL) Rides on Expanding Partner Base, Strong Portfolio
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Oracle’s (ORCL - Free Report) shares have been riding on an expanding partner base and a strong portfolio. Shares of ORCL have returned 19% year to date compared with the Zacks Computer and Technology sector’s growth of 12.2%.
The expanding partner base that includes companies like Microsoft (MSFT - Free Report) and NVIDIA (NVDA - Free Report) is helping ORCL shape its growth trajectory. It is evident from recent acquisitions of prominent clients, such as the Administrative Office of the U.S. Courts, ONO Pharmaceutical and Nokia.
For the fourth quarter of fiscal 2024, total revenues, including Cerner, are expected to grow from 4% to 6%. Total revenues, excluding Cerner, are expected to increase in the range of 6-8%. The total cloud revenues, excluding Cerner, are anticipated to grow in the 22-24% band.
Oracle has collaborated with Microsoft to meet the increasing demand for its Database@Azure across the globe. The collaboration aims to expand ORCL’s Database@Azure to five additional regions, bringing the total planned multi-cloud availability footprint to 15 regions worldwide. Customers can now place orders for the Database@Azure in the Microsoft Azure Germany West Central region in Frankfurt, marking the service's European debut.
To cater to the growing customer demand, the service will soon be available in several new cloud regions, including Australia East, Brazil South, Canada Central, France Central, Central India, Italy North, Japan East, Southeast Asia, Sweden Central, United Kingdom South, Central United States, South Central United States and United Arab Emirates North.
Moreover, Oracle and NVIDIA have extended collaboration to provide sovereign artificial intelligence (AI) solutions to customers worldwide. The collaboration offers turnkey solutions to help customers meet data sovereignty requirements. By combining NVIDIA's full-stack AI platform with ORCL's Enterprise AI, which is deployable across various Oracle Cloud Infrastructure (“OCI”) environments, customers gain greater control over operations, location and security.
The company plans to incorporate NVDA’s Grace Blackwell computing platform across OCI Supercluster and OCI Compute, enhancing performance for AI models significantly. The NVIDIA GB200 Grace Blackwell Superchip promises faster real-time large language model inference and lower total cost of ownership, revolutionizing AI training, data processing, and engineering design and simulation.
Rising Adoption of Cloud Services to Fend Off Competition
The company’s partnerships are likely to aid customer growth, thereby driving cloud services and license revenues in 2024 despite facing stiff competition from industry giants like Salesforce and Amazon (AMZN - Free Report) .
The Zacks Consensus Estimate for ORCL’s fiscal 2024 cloud services and license revenues is pegged at $44.68 billion, indicating year-over-year growth of 26.5%. The Zacks Consensus Estimate for 2024 earnings is pegged at $5.58 per share, indicating year-over-year growth of 8.98%.
Salesforce's Sales Cloud, renowned for its automation capabilities and tailored CRM solutions for government entities, and Microsoft's suite of cloud services for government agencies pose formidable competition.
AMZN’s cloud arm, Amazon Web Services (“AWS”), offers its cloud services to more than 7,500 government agencies. AWS recently made headlines with the launch of SOLAR MINI Small Language Model by the South Korean AI startup, Upstage, on its platform. This innovative model operates seamlessly in both Korean and English, offering functionalities like content comprehension, summarization and translation.
Oracle’s cloud services offering has opened up a new source of recurring revenues (subscriptions), which is expected to improve visibility amid competition. The company is expected to benefit from the ongoing in-premise to cloud transitions leveraging its new technological developments.
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Oracle (ORCL) Rides on Expanding Partner Base, Strong Portfolio
Oracle’s (ORCL - Free Report) shares have been riding on an expanding partner base and a strong portfolio. Shares of ORCL have returned 19% year to date compared with the Zacks Computer and Technology sector’s growth of 12.2%.
The expanding partner base that includes companies like Microsoft (MSFT - Free Report) and NVIDIA (NVDA - Free Report) is helping ORCL shape its growth trajectory. It is evident from recent acquisitions of prominent clients, such as the Administrative Office of the U.S. Courts, ONO Pharmaceutical and Nokia.
An expanding clientele is expected to significantly contribute to this Zacks Rank #3 (Hold) company's top-line growth in the forthcoming quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For the fourth quarter of fiscal 2024, total revenues, including Cerner, are expected to grow from 4% to 6%. Total revenues, excluding Cerner, are expected to increase in the range of 6-8%. The total cloud revenues, excluding Cerner, are anticipated to grow in the 22-24% band.
Oracle has collaborated with Microsoft to meet the increasing demand for its Database@Azure across the globe. The collaboration aims to expand ORCL’s Database@Azure to five additional regions, bringing the total planned multi-cloud availability footprint to 15 regions worldwide. Customers can now place orders for the Database@Azure in the Microsoft Azure Germany West Central region in Frankfurt, marking the service's European debut.
To cater to the growing customer demand, the service will soon be available in several new cloud regions, including Australia East, Brazil South, Canada Central, France Central, Central India, Italy North, Japan East, Southeast Asia, Sweden Central, United Kingdom South, Central United States, South Central United States and United Arab Emirates North.
Moreover, Oracle and NVIDIA have extended collaboration to provide sovereign artificial intelligence (AI) solutions to customers worldwide. The collaboration offers turnkey solutions to help customers meet data sovereignty requirements. By combining NVIDIA's full-stack AI platform with ORCL's Enterprise AI, which is deployable across various Oracle Cloud Infrastructure (“OCI”) environments, customers gain greater control over operations, location and security.
The company plans to incorporate NVDA’s Grace Blackwell computing platform across OCI Supercluster and OCI Compute, enhancing performance for AI models significantly. The NVIDIA GB200 Grace Blackwell Superchip promises faster real-time large language model inference and lower total cost of ownership, revolutionizing AI training, data processing, and engineering design and simulation.
Oracle Corporation Price and Consensus
Oracle Corporation price-consensus-chart | Oracle Corporation Quote
Rising Adoption of Cloud Services to Fend Off Competition
The company’s partnerships are likely to aid customer growth, thereby driving cloud services and license revenues in 2024 despite facing stiff competition from industry giants like Salesforce and Amazon (AMZN - Free Report) .
The Zacks Consensus Estimate for ORCL’s fiscal 2024 cloud services and license revenues is pegged at $44.68 billion, indicating year-over-year growth of 26.5%. The Zacks Consensus Estimate for 2024 earnings is pegged at $5.58 per share, indicating year-over-year growth of 8.98%.
Salesforce's Sales Cloud, renowned for its automation capabilities and tailored CRM solutions for government entities, and Microsoft's suite of cloud services for government agencies pose formidable competition.
AMZN’s cloud arm, Amazon Web Services (“AWS”), offers its cloud services to more than 7,500 government agencies. AWS recently made headlines with the launch of SOLAR MINI Small Language Model by the South Korean AI startup, Upstage, on its platform. This innovative model operates seamlessly in both Korean and English, offering functionalities like content comprehension, summarization and translation.
Oracle’s cloud services offering has opened up a new source of recurring revenues (subscriptions), which is expected to improve visibility amid competition. The company is expected to benefit from the ongoing in-premise to cloud transitions leveraging its new technological developments.