To The Moon

🌟🌟🌟$Oracle(ORCL)$  shares rose 11.4% on Tuesday as a push to embed AI into its Cloud Service products boosted its first quarter results and helped it to narrow the gap with market leaders. 

Revenue from its Cloud products rose 21% to USD 5.6 billion  in the first quarter while its overall revenue of USD 13.31 billion beats Wall Street Analysts' expectations.  Oracle's Cloud products is seen as a less expensive option compared to that of $Microsoft(MSFT)$  and $Amazon.com(AMZN)$ .

With the current share price gains, Oracle is set to add about USD 39 billion to its market value.  Oracle's share price is up 51% year todate and in 2023, it has risen 24%.  Larry Ellison, Oracle 's Founder' s net worth has soared by a record USD 14 billion in just 1 day, making him the 5th richest person in the world with a net worth of USD 168 billion, according to Bloomberg's Billionaires Index.

Oracle was founded in 1977 by Larry Ellison,  Bob Miner and Ed Oates.  The company's first product was Oracle Database, the first commercially available relational database management system to use SQL.  Over the years, Oracle has grown through internal development and acquisitions to become one of the largest software companies globally with over 130,000 employees and operations in more than 175 countries.

Since 2016, Oracle has offered fully integrated Cloud services, bringing together Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).

Oracle specialises in developing and marketing database software and technology, cloud engineered systems and enterprise software products.   To put it simply, Oracle creates tools that help businesses manage and organise their data more effectively.

According to CEO Safra Catz, Oracle's Cloud Services has become its largest business with both its operating income and earnings per share growth accelerating.   Oracle's Fiscal Q1 2025 GAAP Earnings per share is up 20% to USD 1.03 and non GAAP Earnings per share is up 17% to USD 1.39.

Q1 Total Revenue is USD 13.3 billion, up 7%.  RPO or remaining performance obligation is up 53% from last year to a record USD 99 billion.  That strong contract backlog will increase revenue growth throughout FY25.  RPO is an indicator of the revenue that Oracle expects based on executed contracts that  have not yet been fulfilled as of the end of a reporting period. 

The biggest news of all was the signing of a Multi Cloud Agreement with Amazon Web Service.  This will enable AWS customers to get easy and convenient access to the Oracle database when it goes live in December 2024.

Oracle has 162 cloud data centers in operation and under construction around the world.  The largest of these data centers is 800 megawatts and will contain acres of $NVIDIA Corp(NVDA)$  GPU clusters for training large scale AI models.  In Q1, 42 additional cloud GPU contracts were signed for a total of USD 3 billion.

Oracle's database business growth rate is increasing as a result of its MultiCloud agreement with $Microsoft(MSFT)$  and Google.  Soon Oracle's customers will be able to use the latest Oracle's database technology from within every Hyperscaler's Cloud.

Oracle's Board of Directors has declared a quarterly cash dividend of 40 cents per share.  It goes ex dividend on October 10 with payment to be made on October 24.  This is a Dividend yield of 1.02%.

Performance wise Oracle's share price has been on a tear as it is up 11% in the past 5 days and 51% year todate.  In 2023, Oracle had risen by 24%.  But if we look back 5 years ago, Oracle has skyrocketed by 192%!

Wall Street Analysts are bullish on Oracle with an average Target price of USD 166.27, an upside potential of 5%.

I am bullish on Oracle as I believe that it has exponential growth ahead and a wide moat.  This is due to Oracle's comprehensive suite of applications and services and its tie up with major cloud providers like Amazon, Microsoft and Google. 

Oracle has come a long way from its humble beginnings in 1977 to be a global giant today.  However with the push towards AI, the future is very exciting for Oracle.  I believe that it has the potential to be the next Trillion Dollar Company. 

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