Oracle's Cloud Business Is Booming: Is It Time to Buy the Stock?
(NYSE: ORCL) is still a small player in the cloud infrastructure market. The company generated $1.4 billion in cloud infrastructure-as-a-service (IaaS) revenue in the fiscal fourth quarter, which ended May 31. That's a small fraction of the $21.4 billion in revenue produced by market leader Amazon Web Services (AWS) in the latest quarter.
What Oracle does have, though, is a much higher growth rate. Oracle's IaaS revenue grew 76% year over year in the fiscal fourth quarter, far faster than the largest players. AWS managed 16% growth in Amazon's latest quarter, Microsoft's Azure posted 27%, and Alphabet's Google Cloud expanded by 28%.
While other cloud infrastructure providers have seen their growth rates drop as businesses pull back on spending in a tough economy, Oracle's growth has accelerated dramatically. In the fiscal fourth quarter of last year, Oracle's IaaS revenue was growing at a 36% rate. A year later, that rate has more than doubled. The popularity of Oracle's cloud for running generative artificial intelligence (AI) workloads has contributed to this acceleration.
Source Fool.com
Oracle Corp. Stock
The stock is an absolute favorite of our community with 30 Buy predictions and no Sell predictions.
With a target price of 121 € there is a slightly positive potential of 12.47% for Oracle Corp. compared to the current price of 107.58 €.
