Oracle Corporation (ORCL) experienced its best stock gains in two years on Tuesday, 12 March 2024, after publishing significant quarterly increases in its cloud computing segments. When the closing bell sounded in New York, the database management firm’s shares were up 11.75%.
Oracle shares making the most of surge in bookings
For its financial quarter ending 2024, the company reported total remaining performance obligations of $80bn instead of the predicted $59bn. This 29% all-time high increase strengthens Oracle’s global competitiveness.
In its press statement, chief executive officer Safra Catz noted:
We expect to continue receiving large contracts reserving cloud infrastructure capacity because the demand for our Gen2 AI infrastructure substantially exceeds supply – despite the fact we are opening new and expanding existing cloud data centres very rapidly.
Based on a Bloomberg report, Oracle stock rose as much as 12% at one stage during Tuesday’s trading hours, pegging the price per share at $129.03. Oracle’s cloud revenue was $5.1bn, a 25% spike. The company indicated that its applications contributed $3.3bn to this income, while renting out computing power and storage added $1.8bn.
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It may become a noteworthy competitor in big tech circles if Oracle maintains this trajectory. The firm said it will roll out its new artificial intelligence system to expedite healthcare practices in Q4.
Larry Ellison, Oracle’s chairman and chief technology officer, said:
In Q3, Oracle finished moving most Cerner customers to Oracle’s Gen2 Cloud Infrastructure. In Q4, Oracle will start delivering its new Ambulatory Clinic Cloud Application Suite to these customers.
Whether Oracle can keep up with cloud demands remains to be seen.
