GOOGL - Oracle: AI Bingo Nearly Complete Thanks To OCI

2024-06-14 23:49:10 ET

Summary

• Oracle's Q4 earnings report showed missed revenue and EPS estimates, but strong growth in cloud infrastructure and operating margins.
• Company's RPOs surged to $98 billion, with major AI-related deals signed with OpenAI and Google driving optimism.
• Despite high Capex spending projections for FY25, Oracle's strong free cash flow generation and AI partnerships position it well for future growth.

Investment Thesis

In my last article on Oracle Corp ( ORCL ), published in March 2024 , I talked about the company’s third-quarter earnings and analyzed the company’s plans to capitalize on the AI boom. I had a HOLD rating on the stock. Since my article was published, the stock has gained 8.7%, handily outperforming the S&P 500, which gained 5.1% during the same period. ...

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