Well folks, we finally know that when David Ellison isn’t using his nepo son as a Trojan Horse to take over Hollywood, he’s legit printing money with his old dusty database company. In short, the Austin - based tech giant just pulled off an earnings flex so hard it sent its stock price into orbit, making Larry Ellison's net worth swell by an additional $18 billion. 

(Source: CNBC) 

The reason? Oracle is absolutely killing it in the cloud and AI game. Their latest quarterly results came in hot, with profit at $1.39 per share, breezing past Wall Street’s estimate of $1.33. Revenue? Up 8%, hitting $13.3 billion versus the $13.2 billion the analysts had scribbled down.

(Source: Yahoo Finance) 

As expected, investors went on a buying frenzy as the stock shot up by +14.7%, hitting an all-time high of $160.50. Meaning, Ellison's net worth is now sitting at a casual $191 billion after this bigly win, putting him right behind Elon Musk and Jeff Bezos in the “I can afford to buy a small country” club. 

(Source: Giphy) 

The main driver of Oracle's growth comes down to two words: cloud computing. Turns out, businesses can’t get enough of Oracle’s cloud infrastructure, with revenue from that segment leaping a whopping 45% to $2.2 billion. Which basically signals that Oracle is out here building data centers like they’re Starbucks popping up on every corner—162 centers already up and running or being built, including a shiny new one in Saudi Arabia. 

(Source: The Information) 

Additionally, Oracle's growth gets even better (or crazier, depending on how you look at it). As we all know, Larry Ellison never does things halfway - like, say, puppeteering his son in order to get a backdoor 77.5% ownership stake in Paramount. Savvy eh? Well now, he’s said to be planning to build even bigger data centers. How big? Try, powered by big nuclear reactors “big” as they’re now eyeing up to 2,000 data centers globally.

(Source: Data Center Dynamics) 

Of course, most of these will likely be smaller facilities, but still… 2,000 is nothing to scoff at. 

On the other hand, there’s a massive trend taking place all over the world called Artificial Intelligence. Maybe you’ve heard of it, maybe you haven’t, but Oracle is heavily capitalizing on it. Think data centers and cloud being the shovels to the gold rush. For instance, Oracle's cloud applications that come sprinkled with a bit of AI magic raked in $3.5 billion in revenue, up 10%. Not bad for a company once known more for its solid, but admittedly unsexy, database software.

(Source: Giphy) 

Notably, the other massive win that came out of this earnings report sits nice and pretty in Oracle's new OCI AI Cloud. Whereas, this absolute UNIT of a beast allows companies to build, train, and deploy machine learning models on Oracle’s infrastructure. CEO Safra Catz—who, by the way, was probably grinning ear to ear during the earnings call—said the customer interest in this new AI toy is off the charts (which is zero percent surprising to pretty much everyone… because, you know, it’s AI). 

(Source: Giphy) 

So clearly, Oracle is absolutely crushing it while investors are solacing in their soaring shares. But with that said, when satisfaction comes, growth stops, and right now Oracle definitely isn’t sitting back and counting its cloud gains. 

For instance, Oracle is doing its best impersonation of Adam Neumann, creating partnerships with competitors (shockingly) like Amazon Web Services (AWS), Microsoft, and Google. The reason is so that Oracle can open up its level of avenues for its Oracle database software to run on. This according to Safra Catz is a major win that will allow Oracle customers to mix-and-match their database across different cloud providers. 

(Source: Venture Beat) 

But, but, but…

Remember, there’s always two sides to a story. And before you degenerate traders start racing to see who can load up on the most Oracle call options, there’s a slight catch here. Simply put, Oracle is only forecasting revenue growth of 8% for its next quarter. Now while that might seem impressive, keep in mind that this is a bit of a cooldown from the 13% growth they reported for the full fiscal year in May.

Of course, the only reason I say that is because guidance numbers play a massive impact across Wall Street due to their obsessive nature over “predictions” - and not the actual numbers. See: Nvidia earnings for example. 

(Source: Giphy) 

But still, Wall Street doesn’t seem to concerned as Mark Moerdler from Bernstein, stated, “I feel better than ever about Oracle.” Which, let's be real, is definitely high praise considering the company's past reputation has revolved around being a part of the “old guard” in the tech world. 

So with all of that said, what's the real takeaway here? Simple: Oracle's no longer just your dad’s database company—it’s a cloud and AI powerhouse. With demand for cloud computing and AI growing faster than Apple can put more megapixels in a friggin camera, Oracle is clearly riding high, and Larry Ellison’s bank account is right there with it. 

(Source: Forbes) 

Speaking of bank accounts though…

While investors and traders are looking to catch a few extra bucks from this soaring Oracle stock (which is already in the $160 price range), our Stocks.News premium members are strutting their stuff after last month's wins. 

The wins you ask? Oh just here and there wins of 160%, 300%, 98.60%, and 160.78%... all in less than 48 hours. 

(Source: Giphy) 

Which is why, now that this week is filled with volatility drivers such as tomorrow's CPI and PPI reports (not to mention it’s the week right before grandpa Powell drops the mic on the economy), our next alert we’re about to release is set to be even more massive! 

Meaning, if that suits your fancy and you want to get in on the action… well, just click here friends. Because, we’re about to drop our next alert very, and I mean very soon. 

In the meantime, stay safe and stay frosty friends! Until next time… 

Stocks.News holds positions in Apple, Microsoft, Amazon, and Google as mentioned in the article.