FMP

FMP

Enter

Wall Street Dives into Oracle's Cloud Transformation: A Mixed Bag of Optimism and Caution

-

twitterlinkedinfacebook
blog post cover photo

Image credit: Viva Luna Studios

Wall Street Dives into Oracle's Cloud Transformation: A Mixed Bag of Optimism and Caution

Oracle, the tech giant traditionally known for its on-premise software solutions, is aggressively pushing into the cloud computing market. This shift hasn't gone unnoticed by Wall Street analysts, who are offering a mix of optimism and caution regarding Oracle's cloud transition.

Oracle's Cloud Ambitions

  • Playing Catch-Up: Oracle is undeniably behind cloud leaders like Amazon Web Services (AWS) and Microsoft Azure. However, the company is making significant investments in cloud infrastructure and strategic partnerships to close the gap.
  • Focus on Autonomous Database and OCI: Oracle's cloud strategy hinges on its Autonomous Database, a self-managing database platform, and Oracle Cloud Infrastructure (OCI), its suite of cloud services.

Analyst Viewpoints

  • Growth Potential Recognized: Analysts acknowledge the potential for substantial growth in Oracle's cloud business. Pro Research, for instance, forecasts a growth rate of 43-45% year-over-year through FY26, with Oracle's cloud market share rising from 3% in 2024 to 4% in 2025.
  • Concerns Remain: Despite the positive outlook, some analysts remain cautious. Potential decline in on-premise sales and competition from established cloud players are key concerns.

Key Points Highlighted by Analysts

  • Integration of Cerner: The recent acquisition of Cerner, a healthcare IT leader, is expected to contribute to Oracle's cloud earnings growth and potentially lead to increased profit margins once fully integrated.
  • AI Focus: Oracle's investments in AI infrastructure and its partnership with NVIDIA are seen as positive signs for future growth and innovation in the cloud space.

Overall, Wall Street seems to be cautiously optimistic about Oracle's cloud transition. The company has a long way to go to match the dominance of AWS and Azure, but its aggressive investments and strategic moves suggest a serious commitment to cloud success.

Unleash the power of informed decision-making! Leverage FMP's Advanced DCF API to:

  • Analyze the financial viability of Oracle's cloud business model.
  • Compare Oracle's cloud growth prospects to its competitors.

Make smarter investment choices. Get started with FMP Advanced DCF API today!

Link: Financial Modeling Prep Advanced DCF API

Will Oracle's cloud push pay off? What are your thoughts on the company's future in the cloud market? Share your insights in the comments below!

Other Blogs

May 14, 2024 11:41 AM - Sanzhi Kobzhan

The easiest way to calculate stock’s target price and why the target price is important.

A stock's target price, also known as its fair value, is an indication of what a share can cost based on the company’s forecasted financial statements. It is important to know a stock's fair value to find undervalued stocks with great growth potential. Let's consider how investment analysts calculat...

blog post title

May 16, 2024 8:06 PM - Gordon Thompson

Deutsche Bank Upgrades AST SpaceMobile to Buy Amid Legal Challenges

On Thursday, May 16, 2024, Deutsche Bank upgraded its rating on NASDAQ:ASTS to Buy, maintaining a hold position. At the time of the announcement, ASTS was trading at $4.03. This decision was accompanied by an increase in the price target for AST SpaceMobile, raised to $22 from $19, as detailed in a ...

blog post title

May 24, 2024 9:30 AM - Rajnish Katharotiya

How to Access and Analyze Earnings Call Transcripts

Earnings call transcripts are invaluable resources for investors, analysts, and financial enthusiasts. They provide insights into a company's performance, strategy, and future outlook, making them essential for making informed investment decisions. With Financial Modeling Prep, Earnings Call Transcr...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep