Oracle Shares Hit Record High on AI-Fueled Cloud Growth
Company signs partnership agreements with Microsoft, OpenAI
Oracle Shares Jump on Better-Than-Expected Bookings
Tweet on Oracle collab with Microsoft and OpenAI
@Oracle shares hit record high on AI-fueled cloud growth, as the company signs partnership agreements with Microsoft, OpenAI#oracle #cloud #microsoft #openai pic.twitter.com/1J0TEChm1X
— The_Journalbiz (@the_journalbiz) June 12, 2024
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Oracle Corp. reported better-than-expected bookings and announced partnership deals with tech rivals, giving a boost to Chairman Larry Ellison’s effort to redefine the software maker as a major competitor in the business of cloud computing. Shares hit a record high.
The company, known for its database software, is focused on expanding its cloud infrastructure unit — which rents computing power and storage — to compete with Amazon.com Inc., Microsoft Corp. and Alphabet Inc.’s Google. While this division produces a small portion of total sales, investors view it as Oracle’s major future growth bet.
Oracle shares jumped as high as 12.7% to $139.60 on Wednesday morning. The stock is up about 30% so far this year.
In the past two quarters, “Oracle signed the largest sales contracts in our history — driven by enormous demand for training AI large language models in the Oracle Cloud,” Chief Executive Officer Safra Catz said Tuesday in a statement.
Revenue growth will increase by double digits in the current fiscal year ending in May 2025, fueled by strong demand for artificial intelligence workloads, Catz said. Growth should accelerate through the year as the cloud unit’s “capacity begins to catch up with demand,” she added.
