Key points:
- Oracle makes history… again
- Shares notch best week since 2001
- CEO Catz anticipates more growth ahead
It’s 2001 again, you’re in your pajamas and Windows Me is the real deal. You hit the power button on your PC and you see Oracle’s stock is up.
🥳 Oracle Shares Party Like It’s 2001
- Oracle stock ORCL just gave us a trip down memory lane, going all the way back to April 2001 when its shares rallied a solid 25% in a week. Well, this happened again (almost) 24 years later because the cloud infrastructure giant rallied 24% this week. Feel old yet?
- It’s all thanks to a seriously good earnings report paired with some bold guidance for the foreseeable future. The cherry on top? Shares of Oracle hit a record high of $215.22 to wrap up Friday’s regular trading.
- Back in 2001, shares were trading around the $20 mark and were bouncing around while traders were in the midst of the dot-com crash and figuring out if Oracle is undervalued or overvalued.
🤸 Breakdown: Numbers Time
- Enough of that, let’s see those numbers. Adjusted earnings per share for the fiscal fourth quarter ended May 31 landed at $1.70 against $1.64 expected, up 12.4% year over year. Revenue soared 11% to $15.9 billion against $15.6 billion penciled in.
- Net income, a big one, jumped to $3.43 billion from $3.14 billion in the year-ago quarter. The upbeat performance was released Wednesday and the stock just kept moving higher, booking a 14% Thursday gain and an 8% Friday pop.
- Looking ahead, the software giant is bolder than ever. Chief executive Safra Catz projected adjusted earnings per share for the fiscal first quarter to hit $1.46 to $1.50. Revenue is expected to rise 12% to 14%.
🎤 Few Words from C-Suite
- The new fiscal year, 2026, Catz said, should bring more than $67 billion from sales, up from $57.4 billion. But there’s also an increase in capex, which is projected to soar to $25 billion, up from $21 billion.
- “The demand is astronomical,” Larry Ellison, Oracle’s founder and chairman, told listeners on the earnings call. “But we have to do this methodically. The reason demand continues to outstrip supply is we can only build these data centers, build these computers, so fast.”
- “We will build and operate more cloud infrastructure data centers than all of our cloud infrastructure competitors combined,” Ellison said. Shares of Oracle, which serves big tech clients such as Meta and OpenAI, are up 30% on the year, boasting a total market cap of $603 billion. Time to reconsider the Mag 7 membership?
