Latest news with #cloudinfrastructure
Yahoo
9 hours ago
- Business
- Yahoo
1 Magnificent Growth Stock to Buy Before It Soars Higher After This Event
Oracle stock gained momentum after its latest quarterly report. The stock seems primed for more upside thanks to rapidly growing demand for Oracle's cloud infrastructure. Oracle is on track to deliver faster earnings growth in the future, which could help the stock sustain its bull run. 10 stocks we like better than Oracle › Oracle (NYSE: ORCL) stock has been in fine form on the market over the past couple of months, gaining 77% from its April 21 52-week low. And it looks like this technology giant is primed for more upside following the release of its latest quarterly report. Oracle reported its fiscal 2025 fourth-quarter results (for the three months ended May 31) on June 11. The market reacted positively, pushing the price higher for reasons that aren't all that surprising. Oracle, which made its name by selling database management software, now benefits from the tremendous demand for its cloud infrastructure services. The company not only delivered better-than-expected numbers, but it also issued solid guidance that points toward an even better year. Let's take a look at Oracle's latest report and why it may be a good idea to buy the stock right away. Oracle ended fiscal 2025 with $57.4 billion in annual revenue, up 9% in constant currency terms. The company expects to deliver at least $67 billion in revenue in fiscal 2026 (a jump of almost 17%). Don't be surprised to see Oracle clock even stronger growth, as only some of the company's artificial intelligence (AI)-related catalysts are baked into the guidance. On the earnings call, Oracle Chief Technology Officer Larry Ellison said that the company's revenue pipeline could be much larger than what it is projected in the earnings report. The cloud giant reported a 41% year-over-year increase in its remaining performance obligations (RPO) in fiscal Q4 to $138 billion. RPO refers to the total value of Oracle's contracts that are yet to be fulfilled at the end of a quarter, and the massive increase in this metric explains why it is expecting a stronger top-line increase this year. CEO Safra Catz projects the company's RPO will more than double in fiscal 2026, outpacing the projected growth in its revenue, which can set the stage for years of strong growth for the company. This massive increase in Oracle's RPO can be attributed to the stunning demand for its cloud infrastructure, which is being used for AI training and inference purposes by customers. According to Ellison, Oracle could be understating its RPO if the $500 billion Stargate AI infrastructure project it is a part of pans out as expected. Oracle is one of the key technology partners and funders of the OpenAI-led venture that's backed by SoftBank and Abu Dhabi-based MGX, and it will "closely collaborate to build and operate" AI infrastructure as a part of this project. Meanwhile, the booming demand for cloud AI infrastructure to train and deploy AI applications in general is going to be a long-term tailwind for Oracle, which is finding it difficult to deploy enough capacity to meet the demand. Ellison told analysts on the earnings call that one of its customers wanted to buy Oracle's entire cloud capacity. Not surprisingly, Oracle is going to build 30 dedicated data centers in fiscal 2026, apart from the existing 29 that it already has. It also plans to increase its MultiCloud data centers, which it operates with other major cloud computing providers such as Amazon, Alphabet's Google, and Microsoft, from the current strength of 23 by building another 47 MultiCloud data centers over the next year. This focus on capacity expansion is the reason why the company is forecasting Oracle Cloud Infrastructure (OCI) revenue to grow at a faster pace of 70% in fiscal 2026, following a 50% jump last year. In all, Oracle could be at the beginning of a terrific growth curve, considering the potential catalysts such as Stargate and the opportunity in the cloud infrastructure-as-a-service (IaaS) market that's expected to generate a whopping $712 billion in revenue by 2032, growing at an annual rate of 21%. Oracle delivered non-GAAP (adjusted) net income of $6.03 per share in fiscal 2025, an increase of 8.5% from the prior year. Investors should note that the company's capital expenses more than tripled during the year to $21.2 billion. Its forecast of $25 billion in capital expenses for fiscal 2026, which points toward a slower increase from last year, explains why analysts expect faster bottom-line growth from Oracle this year, and beyond. Moreover, the company seems on its way to crushing its own long-term expectations. Oracle pointed out last year that it expects to hit $66 billion in revenue in fiscal 2026, but its forecast points toward a bigger jump. Also, Oracle expects its bottom line to grow at an annual pace of more than 20% through fiscal 2029. Oracle could eventually do better than that as the market it is serving is massive and the revenue pipeline it is building is remarkable. All this makes Oracle a top AI stock to buy right now as it is trading at just 31 times forward earnings. That's in line with the Nasdaq-100 index's earnings multiple, suggesting that investors can buy Oracle right now at a very attractive valuation, considering the healthy upside it could deliver in the long run. Before you buy stock in Oracle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Oracle wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 1 Magnificent Growth Stock to Buy Before It Soars Higher After This Event was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
IBM vs. Oracle: Which Hybrid Cloud Stock Offers Better Growth?
International Business Machines Corporation IBM and Oracle Corporation ORCL are two leading players in the hybrid cloud infrastructure and database services. IBM offers cloud and data solutions that aid enterprises in digital transformation. In addition to hybrid cloud services, the company provides advanced information technology solutions, computer systems, quantum computing and supercomputing solutions, enterprise software, storage systems and is one of the largest enterprise-grade database, middleware and application software providers. The company has expanded its cloud computing operations over the last couple of years. It offers cloud solutions and services that can be used to build and manage various cloud deployment models. Built upon open industry standards such as SQL, Java and HTML5, Oracle Cloud provides access to application services, platform services and infrastructure services for a subscription. Through its Oracle Enterprise Manager offering, the company manages cloud environments. With a focus on hybrid cloud and AI (artificial intelligence), both IBM and Oracle are strategically positioned in the cloud infrastructure market and have the wherewithal to cater to the evolving demands of business enterprises. Let us delve a little deeper into the companies' competitive dynamics to understand which of the two is relatively better placed in the industry. IBM is poised to benefit from healthy demand trends for hybrid cloud and AI, which drive the Software and Consulting segments. The company's growth is expected to be aided by analytics, cloud computing and security in the long term. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability. With a surge in traditional cloud-native workloads and associated applications, and a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which, in turn, have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management. IBM's acquisition of HashiCorp is a probable ploy to address these issues. The integration of HashiCorp's cloud software capabilities has strengthened IBM's hybrid multi-cloud approach. IBM completed the acquisitions of StreamSets and webMethods from Software AG to augment its AI platform and automation capabilities. The buyouts bring together leading capabilities in integration, API management and data ingestion. Despite solid hybrid cloud and AI traction, IBM is facing stiff competition from Amazon Web Services and Microsoft Corporation's MSFT Azure. Increasing pricing pressure is eroding margins, and profitability has trended down over the years, barring occasional spikes. The company's ongoing, heavily time-consuming business model transition to the cloud is a challenging task. Weakness in its traditional business and foreign exchange volatility remain significant concerns. Oracle's cloud infrastructure business has witnessed healthy demand trends in fiscal 2025 with Infrastructure-as-a-Service revenue surging 51% to $10.2 billion and total cloud services increasing 24% year over year to $24.5 billion. The company's differentiated cloud architecture, designed specifically for enterprise workloads, continues to attract customers seeking superior performance and capabilities. Management expects cloud infrastructure revenues to grow more than 70% in fiscal 2026. This, in turn, is likely to help Oracle capture a greater pie of the rapidly expanding cloud infrastructure market, particularly as enterprises migrate mission-critical workloads to the cloud, seeking better performance and cost economics. The company's Oracle 23 AI database represents a transformative AI data platform, uniquely positioned to make enterprise data immediately available to popular large language models while maintaining complete data privacy. This AI-centric approach addresses the critical enterprise need to leverage AI with proprietary data, creating a powerful growth driver that management describes as foundational to the company's expanding market opportunity and competitive differentiation. However, Oracle's multi-cloud approach offers significant technical complexity and operational risks that could undermine service reliability and customer satisfaction. Managing Oracle database services across Amazon Web Services, Microsoft Azure and Google Cloud Platform creates multiple points of failure and increases support complexity exponentially. The company's expansion to several multi-cloud data centers amplifies these integration challenges while dividing management attention across competing platforms. Oracle's cloud infrastructure business also faces overwhelming competition from Amazon Web Services, Microsoft Azure and Google Cloud Platform. The company's multi-cloud strategy inadvertently validates competitors' platforms, potentially cannibalizing its own Oracle Cloud Infrastructure adoption and undermining long-term competitive positioning. The Zacks Consensus Estimate for IBM's 2025 sales and EPS implies year-over-year growth of 5.5% and 6%, respectively. The EPS estimates have been trending northward over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Oracle's 2025 sales and EPS implies year-over-year growth of 16.1% and 11.3%, respectively. The EPS estimates have been trending northward over the past 60 days. Image Source: Zacks Investment Research Over the past year, IBM has gained 62.9% compared with the industry's growth of 4%. Oracle has jumped 47.5% over the same period. Image Source: Zacks Investment Research IBM looks more attractive than Oracle from a valuation standpoint. Going by the price/earnings ratio, IBM's shares currently trade at 25.11 forward earnings, significantly lower than 31.27 for Oracle. Image Source: Zacks Investment Research IBM and Oracle carry a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks companies expect their sales and profits to improve in 2025. Oracle has shown steady revenue and EPS growth over the past few years, while IBM has been facing a bumpy road. However, with a better price performance and attractive valuation metrics, IBM is relatively better placed than Oracle, although both appear to be on a level playing field in terms of Zacks Rank. Consequently, IBM seems to be a better investment option at the moment. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
3 days ago
- Business
- Globe and Mail
IBM vs. Oracle: Which Hybrid Cloud Stock Offers Better Growth?
International Business Machines Corporation IBM and Oracle Corporation ORCL are two leading players in the hybrid cloud infrastructure and database services. IBM offers cloud and data solutions that aid enterprises in digital transformation. In addition to hybrid cloud services, the company provides advanced information technology solutions, computer systems, quantum computing and supercomputing solutions, enterprise software, storage systems and microelectronics. Oracle is one of the largest enterprise-grade database, middleware and application software providers. The company has expanded its cloud computing operations over the last couple of years. It offers cloud solutions and services that can be used to build and manage various cloud deployment models. Built upon open industry standards such as SQL, Java and HTML5, Oracle Cloud provides access to application services, platform services and infrastructure services for a subscription. Through its Oracle Enterprise Manager offering, the company manages cloud environments. With a focus on hybrid cloud and AI (artificial intelligence), both IBM and Oracle are strategically positioned in the cloud infrastructure market and have the wherewithal to cater to the evolving demands of business enterprises. Let us delve a little deeper into the companies' competitive dynamics to understand which of the two is relatively better placed in the industry. The Case for IBM IBM is poised to benefit from healthy demand trends for hybrid cloud and AI, which drive the Software and Consulting segments. The company's growth is expected to be aided by analytics, cloud computing and security in the long term. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely drive profitability. With a surge in traditional cloud-native workloads and associated applications, and a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which, in turn, have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management. IBM's acquisition of HashiCorp is a probable ploy to address these issues. The integration of HashiCorp's cloud software capabilities has strengthened IBM's hybrid multi-cloud approach. IBM completed the acquisitions of StreamSets and webMethods from Software AG to augment its AI platform and automation capabilities. The buyouts bring together leading capabilities in integration, API management and data ingestion. Despite solid hybrid cloud and AI traction, IBM is facing stiff competition from Amazon Web Services and Microsoft Corporation 's MSFT Azure. Increasing pricing pressure is eroding margins, and profitability has trended down over the years, barring occasional spikes. The company's ongoing, heavily time-consuming business model transition to the cloud is a challenging task. Weakness in its traditional business and foreign exchange volatility remain significant concerns. The Case for Oracle Oracle's cloud infrastructure business has witnessed healthy demand trends in fiscal 2025 with Infrastructure-as-a-Service revenue surging 51% to $10.2 billion and total cloud services increasing 24% year over year to $24.5 billion. The company's differentiated cloud architecture, designed specifically for enterprise workloads, continues to attract customers seeking superior performance and capabilities. Management expects cloud infrastructure revenues to grow more than 70% in fiscal 2026. This, in turn, is likely to help Oracle capture a greater pie of the rapidly expanding cloud infrastructure market, particularly as enterprises migrate mission-critical workloads to the cloud, seeking better performance and cost economics. The company's Oracle 23 AI database represents a transformative AI data platform, uniquely positioned to make enterprise data immediately available to popular large language models while maintaining complete data privacy. This AI-centric approach addresses the critical enterprise need to leverage AI with proprietary data, creating a powerful growth driver that management describes as foundational to the company's expanding market opportunity and competitive differentiation. However, Oracle's multi-cloud approach offers significant technical complexity and operational risks that could undermine service reliability and customer satisfaction. Managing Oracle database services across Amazon Web Services, Microsoft Azure and Google Cloud Platform creates multiple points of failure and increases support complexity exponentially. The company's expansion to several multi-cloud data centers amplifies these integration challenges while dividing management attention across competing platforms. Oracle's cloud infrastructure business also faces overwhelming competition from Amazon Web Services, Microsoft Azure and Google Cloud Platform. The company's multi-cloud strategy inadvertently validates competitors' platforms, potentially cannibalizing its own Oracle Cloud Infrastructure adoption and undermining long-term competitive positioning. How Do Zacks Estimates Compare for IBM & ORCL? The Zacks Consensus Estimate for IBM's 2025 sales and EPS implies year-over-year growth of 5.5% and 6%, respectively. The EPS estimates have been trending northward over the past 60 days. The Zacks Consensus Estimate for Oracle's 2025 sales and EPS implies year-over-year growth of 16.1% and 11.3%, respectively. The EPS estimates have been trending northward over the past 60 days. Image Source: Zacks Investment Research Price Performance & Valuation of IBM & ORCL Over the past year, IBM has gained 62.9% compared with the industry 's growth of 4%. Oracle has jumped 47.5% over the same period. Image Source: Zacks Investment Research IBM looks more attractive than Oracle from a valuation standpoint. Going by the price/earnings ratio, IBM's shares currently trade at 25.11 forward earnings, significantly lower than 31.27 for Oracle. Image Source: Zacks Investment Research IBM or ORCL: Which is a Better Pick? IBM and Oracle carry a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Both companies expect their sales and profits to improve in 2025. Oracle has shown steady revenue and EPS growth over the past few years, while IBM has been facing a bumpy road. However, with a better price performance and attractive valuation metrics, IBM is relatively better placed than Oracle, although both appear to be on a level playing field in terms of Zacks Rank. Consequently, IBM seems to be a better investment option at the moment. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Microsoft Corporation (MSFT): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report
Yahoo
4 days ago
- Business
- Yahoo
Broadcom (NasdaqGS:AVGO) Unveils VMware Cloud Foundation 9.0 Revolutionising Private Cloud Experience
Broadcom recently launched the VMware Cloud Foundation 9.0 platform, marking a significant advancement in their cloud infrastructure capabilities. The company's share price increased by 28% over the last quarter, and while the market itself was relatively stable, Broadcom's performance highlights its strong positioning with new product offerings. Financial results were robust, with impressive earnings growth and a strategic collaboration with NVIDIA bolstering AI solutions. These developments, alongside share buyback initiatives and dividend declarations, would have added weight to Broadcom's share price performance amidst broader market trends. We've spotted 2 warning signs for Broadcom you should be aware of. Uncover the next big thing with financially sound penny stocks that balance risk and reward. Broadcom's recent launch of the VMware Cloud Foundation 9.0 platform underscores its commitment to expanding cloud infrastructure capabilities. This advancement, along with key strategic developments such as the collaboration with NVIDIA and share buyback initiatives, could bolster revenue and earnings forecasts. With ongoing investments in AI and next-generation accelerators, Broadcom is positioning itself to potentially enhance technological leadership and sustained financial growth through increased revenue and margins. However, the reliance on a limited number of hyperscale customers introduces risk that these new ventures aim to mitigate. Over the past five years, Broadcom's total return, including share price and dividends, was very large, reaching 800.83%. While this represents a significant appreciation over the longer term, it's crucial to contextualize these gains against the market and industry. Over the past year, Broadcom has outperformed both the US Semiconductor industry and the broader US market, which returned 1.4% and 9.8% respectively. This demonstrates Broadcom's robust market presence and effective strategic initiatives that resonate well with investors. The current market sentiment is partially reflected in the company's share price, which saw a 28% rise last quarter. With an analyst consensus price target at US$280.41 and a current share price at US$200.09, the shares trade at a 16.1% discount to this target. This suggests that there could be potential upside based on analysts' growth expectations, assuming other risks are effectively managed. As analysts anticipate improved earnings and revenue growth, driven by AI-related initiatives, monitoring Broadcom's ability to actualize these forecasts will be essential for evaluating future performance. Examine Broadcom's earnings growth report to understand how analysts expect it to perform. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:AVGO. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
4 days ago
- Business
- Yahoo
Oracle (NYSE:ORCL) Advances AI Cloud Infrastructure And Defense Innovations With New Partnerships
Recent developments at Oracle underscore the company's robust focus on cloud infrastructure and AI, highlighted by partnerships with AI innovators and the introduction of its Oracle Compute Cloud@Customer Isolated service. Oracle's recent 37% rise in share price over the last quarter coincides with such announcements. Although global markets displayed volatility due to geopolitical tensions, Oracle's price movement is aligned with broader tech stock trends, bolstered by strong earnings and strategic client acquisitions. These factors could have reinforced Oracle's market position amidst a generally stable market, adding to the positive sentiment. Every company has risks, and we've spotted 1 possible red flag for Oracle you should know about. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. The recent developments at Oracle, centered around its advanced cloud infrastructure and AI collaborations, suggest potential for robust future revenue and earnings growth. These initiatives are aimed at capturing the escalating demand for AI-driven solutions and enhancing cloud capabilities. The strategic partnerships with AWS, Google, and Azure are particularly instrumental in accelerating database migration and expanding Oracle's cloud footprint, contributing to its long-term growth narrative. The forecasted increase in Oracle's power capacity and rise in performance obligations reinforces expectations for continued revenue acceleration, which aligns with analysts' projected annual revenue growth of 15.8% over the next three years. Oracle's shares have exhibited a long-term growth trajectory, with a total return of over 300% over five years, highlighting substantial shareholder value creation. Comparatively, Oracle outperformed both the broader market and the US Software industry over the past year, where the latter achieved an 18.6% return. This sustained performance reflects Oracle's ability to maintain growth momentum despite market challenges, further supported by its strategic initiatives and expanding market penetration. The recent 37% share price increase over the last quarter may signal positive sentiment around these announcements and Oracle's strategic direction. However, the share price currently sits at US$147.70, indicating a discount to the consensus analyst price target of US$178.12, suggesting potential market confidence in further upside. These elements, along with the projected increase in earnings to US$19.5 billion by 2028, underpin the company's valuation discussions in the market. Nevertheless, Oracle's execution risks such as cloud capacity delays and currency volatility must be acknowledged as potential headwinds for achieving these forecasts. Review our growth performance report to gain insights into Oracle's future. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:ORCL. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
