Oracle aims to become a trillion-dollar stock by 2030 through cloud services & AI

From Yahoo Finance:

Oracle’s stock has surged 140% in the past five years, but it’s still smaller than tech giants like Microsoft and Amazon. With a market cap of $350 billion, Oracle aims to join the elite trillion-dollar club by the end of the decade by focusing on cloud services and AI infrastructure.

Oracle’s core growth strategies involve transforming its applications into cloud-based services, acquiring high-growth companies like NetSuite and Cerner, and repatriating cash for buybacks. Its cloud services revenue has been growing robustly, with total cloud services revenue accounting for 38% of its top line last quarter.

Oracle’s Oracle Cloud Infrastructure (OCI) platform, though smaller than key competitors, signed significant contracts with TikTok and Nvidia, positioning itself as a key player in the cloud infrastructure market. Analysts predict Oracle’s revenue will grow 8.5% annually, with EPS increasing at a 23% CAGR, potentially boosting its market cap to $900 billion by 2030.

To reach the trillion-dollar mark, Oracle must focus on sustaining the growth of its SaaS and IaaS businesses. Investors should monitor these segments closely, as any slowdown could impact Oracle’s valuation. The stock might not be a screaming bargain at the moment, trading at 28 times next year’s earnings, but the potential growth in cloud and AI businesses could justify its premium.

The Motley Fool’s Stock Advisor service has identified 10 stocks with high growth potential, not including Oracle. However, with a clear path towards a trillion-dollar valuation, Oracle remains an intriguing investment option for those looking to capitalize on the growth of cloud and AI markets.



Read more at Yahoo Finance: Will Oracle Be a Trillion-Dollar Stock by 2030?