Oracle's stock soars 20% in two weeks, fueled by strong cloud performance and strategic partnerships

From Nasdaq: 2024-09-23 07:30:00

Oracle’s stock (NYSE: ORCL) has surged 20% in the past two weeks and boasts a total return of 61% in 2024. The tech giant’s success is attributed to strong AI, data center, and cloud performance, surprising many analysts with its robust outlook in these markets.

With a 45% increase in cloud infrastructure revenue, Oracle stands out in the enterprise planning software (ERP) realm. Its dominant position with large enterprises and essential ERP offerings make it a top choice for companies seeking AI-driven operational enhancements, solidifying its value in the market.

By forming strategic partnerships with Microsoft, AWS, and Google Cloud, Oracle allows customers to optimize data usage across various cloud platforms. These collaborations enhance reliability and flexibility, showcasing Oracle’s adaptability and credibility in the hyperscaler market.

Oracle’s significant increase in valuation, reflected in a 45% rise in its forward P/E ratio, aligns with its growing influence in AI and data center sectors. While trading above the S&P 500’s forward P/E, the company remains competitively valued compared to tech giants like Alphabet, Amazon, and Microsoft, presenting a long-term investment opportunity in the evolving IT landscape.



Read more at Nasdaq:: See Why Oracle’s Cloud Infrastructure Growth Demands Attention