Fast Money Blog- 9/13/24
It was an incredible week for stable tech stocks like Oracle Corporation (ORCL) and the company is winning big-time without a lot of Wall Street hoopla.
As of today, Oracle stock is up 50% on the year. Unlike other high-flyers in this sector, you want to pay attention to this stock and it’s earnings breakdown. This company is doing exceptionally well.
Here’s what I need to explain to you about Oracle and it’s outstanding Q1 performance:
On Tuesday, September 9th, Oracle delivered big-time with its Q1 2025 earnings.
As you may know, Oracle specializes in developing and marketing database software and technology, cloud-engineered systems, and enterprise software products—particularly database management systems.
Here’s what I need to explain to you about Oracle and it’s outstanding Q1 performance:
Total quarterly revenue came in at $13.3 billion, up 8% year-over-year.
Cloud revenue for the quarter came in at a total of $5.6 billion, up 22% year-over-year.
Cloud Infrastructure revenue for Q1 was $2.2 billion, up 46% year-over-year.
In other news, Oracle announced that it will bring database services to Amazon Web Services’ cloud infrastructure. Keep in mind that Oracle signed a similar deal with Alphabet's Google Cloud this past June. These partnerships are going to cause top-line revenue to go higher in the future.
Why do they companies make announcements this as we are approaching the 4th quarter in a few months?
A lot of these deals will help a retail companies (like Amazon) optimize 4th quarter retail sales, which we know is their busiest time.
I strongly recommend that if you haven’t already, you begin building a small position in Oracle.
In addition to Oracle’s stellar earnings, Apple, Inc. (AAPL) released it’s latest products at their annual event. The product upgrades are noteworthy, but not exceptional.
For example, here are some of the highlights:
iPhone 16, with a new chip, nicer screens, updated cameras, and longer battery life. In addition Apple is rolling out their new artificial intelligence capabilities.
AirPods Pro 2 has three new health features, including a clinical-grade hearing aid.
Apple Watch Ultra, which the company says has the most accurate GPS in a sports watch.
These innovations are designed to increase revenue in the company, but time will tell.
A word to wise traders; Please don’t allow yourself to be seduced by high call-option premiums in the third quarter. We are in a market where AI stocks are favored but don’t make the best long-term investments. Stocks like The Allstate Corporation (ALL), The Travelers Companies, Inc. (TRV) and Costco Wholesale Corporation (COST) have all performed extremely well since January 2024.
Be a smart Wealthy Investor and plan financially for the long-term!
Stay open and stay positive.
Tyrone Jackson, The Wealthy Investor