In the last financial year, Oracle's net income increased by 23% to $10.5 billion, with nearly 75% of its revenue coming from its cloud services and license support division. The company signed the largest sales contracts in its history last year, tapping into the "enormous demand" for training large language models. Oracle's CEO, Safra Catz, predicts that revenue growth will accelerate from 6% to double digits this financial year, partly due to collaborations with Microsoft and Google to interconnect their respective clouds. Despite being overshadowed by Nvidia's stock performance, Oracle is still set for its best annual stock performance in 25 years.
Key takeaways:
- Oracle shares have surged 75% since January, making it the company's best year since 1999. This surge has increased Oracle's market value to over $500 billion, making it more valuable than Mastercard, Costco, and Netflix.
- The increase in Oracle's share price has significantly boosted the net worth of Larry Ellison, the company's co-founder and chief technology officer, making him the second richest person on the Forbes Real-Time Billionaires list.
- Oracle's growth is largely driven by its cloud applications and infrastructure, with the company signing the largest sales contracts in its history last year due to high demand for training large language models.
- Despite being less noticed compared to Nvidia, Oracle is still on track for its best annual stock performance in 25 years, with the company's leadership promising further growth.