Oracle’s inventory on tempo for perfect week since 2001 on cloud momentum

Oracle stocks are on tempo for his or her perfect week since 2001 as Wall Street cheers a powerful income record and bullish feedback at the corporate’s potentialities in cloud computing.

The inventory is up about 24% for the week, with virtually all of the positive aspects coming within the two buying and selling days after the corporate’s quarterly income liberate. The ultimate time Oracle had a greater week was once in April 2001, in the middle of the dot-com crash, when so-called dead-cat bounces have been commonplace. The prior quarter Oracle stocks misplaced virtually part their price.

It’s a miles other corporate as of late, and whilst Oracle was once usually seen as a overdue entrant into the cloud infrastructure marketplace, the corporate has discovered a distinct segment and is seeing speedy expansion serving to shoppers perform synthetic intelligence fashions.

“Oracle is in the enviable position of having more demand than it can fulfill,” Joseph Bonner, an analyst at Argus Research, wrote in a notice to shoppers on Friday. He recommends purchasing the stocks and lifted his value goal to $235 from $200.

Oracle rose to a file on Friday, topping $215.

In the corporate’s income record overdue Wednesday, income and income crowned estimates. CEO Safra Catz stated gross sales for the brand new fiscal yr will have to are available above $67 billion, upper than LSEG’s $65.18 billion consensus.

“The demand is astronomical,” Larry Ellison, Oracle’s chairman instructed analysts at the income name. “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.”

Oracle has been taking part in catchup in cloud to competitors Amazon, Google and Microsoft.

In the 2025 fiscal yr, Oracle’s capital expenditures exceeded $21 billion, which is greater than the corporate spent from 2019 to 2024. The sum will have to succeed in $25 billion in fiscal 2026, Catz stated at the name.

Google anticipates $75 billion in capital spending this yr. Microsoft’s goal for the fiscal yr is $80 billion.

Oracle’s shopper listing now contains Meta, OpenAI and Elon Musk’s xAI. They’re a number of the corporations that require probably the most Nvidia graphics processing devices to coach generative AI fashions that create textual content, pictures and movies in keeping with a couple of phrases of human enter.

Startups Baseten, Physical Intelligence and Vast Data also are cloud shoppers, Oracle introduced this week.

“We will build and operate more cloud infrastructure data centers than all of our cloud infrastructure competitors combined,” Ellison stated.

Oracle stocks are up 28% to this point in 2025, whilst the Nasdaq is kind of flat. Among probably the most extremely valued U.S. tech corporations, the following perfect performer for the yr is Meta, which is up 17%.

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