To The Moon

At first when I read the post, I was surprised too and not happy about it. (see below) This is because I am rooting for Google Cloud, for selfish reasons of course ! On closer reading and research into Acceleration Economy - Cloud War Minutes, I realized that they have their proprietary ranking system. Ranking Benchmark: Market share and Growth. Product portfolio and Innovation. Customer focus and Satisfaction. Global reach and Scale. Their Top 10 Cloud providers: Microsoft. Google Cloud. Oracle. Amazon. SAP. ServiceNow. Workday. Salesforce. IBM. Snowflake. Needless to say, I became suspicious by the time I research until here but I decided to press on, with an “open mind”. Hopefully I could learn something new along the way. Oracle ranking justification. Their argument centred squarely on the latest development between $Oracle(ORCL)$ and the two AI giant - $Microsoft(MSFT)$ (with OpenAI) and $Alphabet(GOOG)$. Oracle partnership with Microsoft and ChatGPT maker OpenAI to extend Microsoft's cloud platform, Azure Al, to Oracle Cloud Infrastructure (OCI) to provide additional capacity for OpenAl. Oracle’s agreement with Google will see interconnections between the two clouds. Initially build 12 OCI datacenters inside the Google Cloud. Implementation of Oracle database within the Google Cloud is slated for implementation in September 2024. Since the partnership announcements on 11Jun 2024, Oracle share price has gained a respectalbe +12.34% to $139.17 per share (as of 25 Jun 2024 closing). As for Oracle’s past month performance, it gained +11.79%; fairly optimistic acceleration. Million Dollar question. This brings us to the million-dollar question - Is it time to load up on Oracle? Below are my viewpoints, mine & mine only. It is perfectly alright that reader/s don’t agree with my thoughts on the matter. It is a “free” world out there. Personally, I will not be buying into Oracle, anytime soon. (see below) (1) Weak Q4 2024 earnings. On 11 Jun 2024, Oracle released its Q3 2024 earnings. Results came in “lighter” compared to LSEG consensus: Earnings per share (EPS): $1.63 adjusted vs. $1.65 expected. Revenue: $14.29 billion, vs. $14.55 billion expected. This is a gain of +3.0% YoY. Net income,: $3.14 billion. This was down -5.42% YoY in the year-ago quarter. (2) Failed venture. On 19 Jun 2024, Oracle officially announced it is exiting the advertising business and sunsetting its adtech by 30 Sep 2024. (see above) Oracle, CEO Safra Catz said that revenue had declined to around $300 million. Oracle had spent billions acquiring marketing companies such as BlueKai and Moat in years past, but updates on momentum have been infrequent. The announcement is not surprising given the massive staff layoffs of teams supporting Oracle Advertising in 2022. (3) Future earnings at Risk. On Tue, 25 Jun 2024, Oracle has warned that the proposed TikTok ban could negatively impact the company's operations and revenue. This is because the tech giant provides cloud infrastructure and services to TikTok that has over 150 million users in the US alone. Although, Oracle has not disclosed the details of its financial ties to TikTok, Evercore analyst has performed an estimation back in April 2024. With TikTok is generating US sales of $16 billion annually, it could spend between 3% to 5% of revenue on its Oracle cloud infrastructure. That would work out to between $480 million and $800 million. Given that Oracle's cloud infrastructure revenue for the fiscal year came to $6.9 billion, TikTok’s contribution is no small matter. If TikTok is forced to exit US market, then it would be time to sell Oracle before it is too late ! Must Read: Click on below titles to access. Give a like & help to repost ok. Thanks. Micron: Ride the Semiconductor wave Now ! NVDA short term : Boom or Bust? US Market Peaks or Dips on Fri, 28 June ? Do you think Oracle is too dependent on TikTok ? Do you think Oracle partnership with Microsoft & Google will be its ticket out of earnings doldrum? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents