Shulou(Shulou.com)11/24 Report--

Beijing time on June 15 morning news, According to reports, American commercial software giant Oracle, At present is ushered in "Highlight moment."

Oracle shares rose 4.8 percent to close at $122.24 Wednesday, setting a record for five consecutive days and the eighth time this month. Wall Street analysts were overjoyed that Ellison's 46-year-old company had taken on a new look with cloud computing.

Oracle shares have risen 73% over the past 12 months, outpacing any other tech large-cap stock outside nvidia. Oracle shares are up more than half since the start of the year, which could be the biggest share price gain and shareholder excitement since the dotcom tech bubble of 1999.

Oracle's share price rose sharply because the company's fourth-quarter earnings, revenue and other indicators exceeded analysts 'expectations and won praise from Wall Street. A few days ago, Goldman Sachs Group upgraded Oracle's stock rating from sell to hold.

After the earnings report was released, Bloomberg billionaire data showed that Oracle founder Larry Ellison surpassed Microsoft co-founder Gates to become the world's four richest people, which is also Ellison's best rich list ranking.

Eric Lynch, general manager of Scharf Investments, which owns $163 million worth of Oracle stock, said Ellison is credited with a bright moment for Oracle.

Before this stock price surge, Oracle was in an awkward position in the technology industry, seen as a lost hero who couldn't innovate again.

In the fiercely competitive cloud computing market, Oracle's market share in sales software is constantly eroded by rivals Salesforce. In the field of cloud infrastructure (a segment of cloud computing), Amazon, Microsoft and Google have become leading enterprises, and Oracle has become a "companion to Prince Readers." Oracle has struggled to win cloud computing customers such as TikTok and Zoom, but only to see more high-profile corporate customers walk through its rivals 'doors.

Today, Oracle cloud computing business ushered in a turnaround, from the hot global generative artificial intelligence technology. Represented by ChatGPT, generative artificial intelligence can write articles or create pictures based on several keywords of users.

Cohere is a generative artificial intelligence company for enterprises with products for writing summaries, content search, copywriting and more, with a current capital valuation of $2 billion. Oracle is currently a shareholder in the company.

At the earnings conference, Ellison said several customers had recently signed $2 billion in cloud computing contracts involving Oracle's "second generation cloud" products.

Oracle and Salesforce both offer commercial software. Oracle will be overtaken by Salesforce in 2020, but Oracle will overtake Salesforce in 2021. Today, the two companies 'market capitalizations are vastly different, with oracle valued at $330 billion and Salesforce at $204 billion based on wednesday's closing price.

Moreover, Oracle is currently growing faster than Salesforce. In the most recent quarter, Oracle revenue grew 17% year-over-year, while Salesforce grew just 11%.

Quarterly earnings showed revenue from Oracle's cloud infrastructure business surged 76% year-on-year, beating the 55% growth in the previous quarter. In the report on stock rating adjustments, Goldman Sachs analyst Kash Rangan also mentioned the high growth of Oracle cloud computing.

Langen said that the high growth rate of cloud computing sent a clear signal that Oracle's advertised comparative advantage in cost performance compared to large-scale competitors won the hearts of customers (including existing customers and new customers). Although Oracle entered the cloud infrastructure market relatively late, these advantages will help the company increase market share in the long run.

Goldman Sachs Group reported that although the cloud infrastructure business is growing rapidly, it is gratifying that Oracle management announced that capital expenditure for fiscal year 2024 will remain unchanged, which is obviously a positive for the company's free cash flow.

In the tech industry, Oracle primarily serves enterprise customers, and like many cloud computing rivals, Oracle first sells commercial software running in the cloud, allowing companies to migrate from their own data center (computer room) model to cloud computing. In 2016, Oracle spent $9.1 billion to acquire cloud software vendor NetSuite, expanding its cloud computing capabilities.

However, Oracle's cloud computing strategy fell through and the market ranking declined. In 2009, Ellison even blasted the new term "cloud computing."

He says the tech industry sometimes gets confused when they change a term and then they think they've invented a new technology.

The cloud computing market's subsequent popularity has Oracle on pins and needles. Oracle's stock price rose far behind Amazon, Microsoft and Google from 2010 to 2020, and buying any fund tracking the S & P 500 index returned more than twice as much as Oracle's stock.

Gradually, Oracle learned its lesson and began to imitate the cloud computing leaders and charge customers according to the actual usage of servers, network storage and network connections.

In 2015, Oracle launched its "elastic computing cloud" product, nine years after Amazon's similar EC2 computing product. In 2018, Oracle launched the "second generation cloud" product.

Last October, Ellison revealed that he realized Oracle had been copying its competitors in cloud computing and decided to overhaul the product to introduce a new model.

On Monday, Ellison said corporate customers are looking for ways to cut IT spending, and Oracle's cloud database is faster and more affordable than Amazon's cloud computing products.

Oracle CEO Safra Catz said that some customers are new, but many customers have been working with Oracle for many years, even decades, and everyone will see Oracle's good days in the future.

Katz also thanked Ellison, saying he led Oracle with wisdom, determination and vision, allowing everyone to follow Oracle.

Oracle remains attractive to Wall Street value-oriented investors today. The company has a large number of established customers, a strong profit statement and margins that exceed those of many of its tech rivals.

In sharp contrast to the past, ellison can name big new cloud customers aloud, such as oracle's new deals with north american discount retail giants dollar tree, exxon mobil and pfizer in the fourth quarter.

Regarding the current AI craze, Lynch said Oracle is happy with its current state and location. But he also said Oracle's high growth rate in cloud infrastructure would not last forever.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.