Oracle last Monday presented its economic balance for the fourth quarter, which shows a growth of its shares of almost 4%, beating analyst revenue estimates. All this is due to increased demand for your cloud offerings by companies that incorporate AI into their strategies. Thus, its shares closed on June 12 with an all-time high of $116.43rising to $120.53 in extended trade.
The data has exceeded analyst forecasts and it is now expected that even in the first quarter the growth rate will be higher again. Oracle revenue for the fourth quarter was 13.840 million dollars, an increase of 17%, figures higher than the forecasts of 13,740 million dollars pointed out by some experts. revenue from the cloud increased by 54%until reaching 4,400 million dollars.
Oracle has become one of the best performing companies on the Nasdaqreaching a capitalization value of 315.740 million dollars by accumulating an advance of 42%. In the previous quarter its earnings were $1.9 billion, down 18% from a year earlier.
The keys to your growth
Oracle’s presence in the cloud computing market has been gaining notoriety, especially after the acquisition of Siftthe electronic medical records firm, which allows it to present itself as a stiff competition against Microsoft and Amazon.
Similarly, it has boosted its AI cloud offerings as a result of its partnership with nvidiaensuring that the company’s AI chips and software are also available to Oracle customers through its cloud services.
The link with Nvidia could mean, according to experts, that Oracle would become a State-of-the-art AI/ML development platform. In fact, the determinant effect is already being appreciated by seeing how more than 30 companies focused on LLM development such as Adept AI, Cohere either Mosaicamong others, have signed contracts to acquire 2+ billion Gen2 cloud capacity from Oracle.
Your forecasts
The company now anticipates that its revenue during the next quarter, the fourth, will increase between 8% and 10%, surpassing even the estimates of analysts who place them around 8%. Therefore, Oracle expects its cloud revenues to reach similar figures in 2024 to those achieved in 2023. (https://aardvarkisrael.com)
The prognosis is that its annual profits grow faster than the US market itself, in such a way that investors should delve into the financial data of the company to detect opportunities. And it is that its current target price is around $105.63which implies a downward estimate of around 9% compared to its current level.
Oracle’s Last Big Investment
The company recently invested in Cohere synonymous with its commitment to generative AI, which valued the business at about $2.2 billion. In the investment round, they also participated nvidia and salesforce.
With this bet, Oracle intends to compete with the new alliances established by Open AI and Microsoft and by anthropic and Google. The trend is for tech giants to look for start-ups in the field of generative AI to make new investments that bring them great benefits.
Oracle’s strategy would be integrate Cohere LLM models into your HR software and other products. Cohere has models that also work in private clouds or with local implementations. In fact, Cohere’s LLMs are already available at Amazon Web Services and Google clouds.
Oracle’s goal is none other than focus on the potential additional security gained, the result of accessing Cohere models through the company’s cloud service. It is even anticipated that Oracle would be developing their own LLMs that you could implement in your custom cloud service.
