Oracle’s stock price dropped by almost 7% on Tuesday, the steepest decline in a year, following its disappointing earnings report. Despite this setback, the company’s shares are still up about 69% for the year, which would be their best performance since 1999.
Oracle reported adjusted earnings per share of $1.47, trailing analysts’ average estimate by a penny. Revenue rose 9% from a year earlier to $14.06 billion, missing the $14.1 billion average estimate. However, net income increased 26% to $3.15 billion, or $1.10 a share.
The company’s cloud services business saw significant growth, with revenue jumping 12% from a year earlier to $10.81 billion. This accounted for 77% of total revenue. Oracle’s biggest growth engine has been its cloud infrastructure unit, which surged 52% in the past year to $2.4 billion.
Oracle recently signed an agreement with Meta to use its infrastructure for various projects related to large language models. The company also announced a price target increase from Piper Sandler, citing continued cloud momentum and cRPO growth of 20%.
Source: https://www.cnbc.com/2024/12/10/oracle-shares-head-for-worst-day-of-2024-after-q2-earnings-miss.html