Wednesday, February 21

Oracle Corporation increases sales of cloud solutions

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Oracle stocks gained 15%

The U.S. corporation Oracle is actively developing cloud solutions, and this strategy is already paying off. Its products in this area compete with such giants as Amazon Web Services and Microsoft Azure. As demand for cloud infrastructure increased, the company’s shares rose by 15 percent.
According to Oracle’s latest report, moving business processes to the cloud has already paid off, which is reflected in the rise in share price. The profit and revenue performance of Oracle products has exceeded the forecasts of Wall Street analysts, who did not expect such a success of the company. According to Synergy Research Group, at the end of 2021, the corporation was not in the top five in the segment of cloud infrastructure developers. It managed to show excellent results for the current year, due to which Oracle occupied a high position in the market.
The volume of revenue from the cloud business of the company showed an increase of 39%. This indicates that the direction has entered the hyper-growth stage. It should be noted that Oracle’s business is going very well, not only because of cloud solutions. The corporation’s revenues have been growing for the eighth quarter. In the last period, sales reached over 11.8 billion dollars, exceeding the previous values by 5.5%. Profit was fixed at the level of $1.5 per share.

Oracle Corporation

Earnings performance plays an important role for existing and potential Oracle investors. Businessmen are primarily interested in companies that can accumulate profits and reserve them in case of an economic downturn.
Oracle is now valued at $176 billion. The sale of local and cloud licenses showed growth of 18% and reached $2.5 billion. At the same time, analysts predicted the figure in the range of $2.17 billion.
Sales of Fusion, which is used for financial management, increased 20% last quarter. NetSuite products, which are used to plan processes in small and medium-sized businesses, showed a 27% increase in sales.
A few months ago, Oracle acquired Cerner. The latter is engaged in the provision of services for the medical sector, and the management of its documentation. The transaction amounted to 28.3 billion dollars. According to Oracle management, the purchase will allow the corporation to expand the list of products and strengthen its position in the health sector. The company expects that this direction has every chance to take a major position in the structure of Oracle’s business. Analysts predict that the purchase of Cerner could bring the corporation a 19% increase in revenue as early as the next quarter.

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