Oracle stock surged 80% this year, but dipped post-earnings; strong demand for cloud infrastructure.

From Nasdaq: 2024-12-14 03:25:00

Oracle (NYSE: ORCL) stock has surged 80% this year but dipped over 8% post-earnings due to Q2 results missing estimates. Revenue increased 9% YoY to $14.1 billion with non-GAAP earnings up 10% to $1.47 per share. Demand for cloud infrastructure for AI remains strong, evident in a 50% YoY increase in remaining performance obligations to $97 billion in Q2. Cloud infrastructure revenue surged 52% YoY to $2.4 billion.

Oracle’s cloud infrastructure consumption with GPUs soared 336% in Q2, leading to plans for 35 cloud regions to expand services. The company is well-positioned for growth in the cloud IaaS market, which is projected to reach $212 billion in 2025, up 25% from 2024. Analysts predict earnings to rise 13% each year in fiscal 2025 and 2026.

Investors can benefit from Oracle’s post-earnings pullback, trading at a discount compared to the Nasdaq-100 index. With a growing cloud infrastructure market expected to reach $580 billion by 2030, Oracle’s growth potential is promising. Consider the Motley Fool’s 10 best stocks for investment opportunities.



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