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Oracle Hits Record High on Strong Growth, Cloud Expansions

Oracle

Cloud Infrastructure & Software Solutions in Japan

Business Honor
07 November, 2024

Oracle shares soar to new heights, driven by strong growth, cloud expansions, and positive outlook

Oracle Corporation (NYSE: ORCL) achieved its all-time historical milestone. The company's shares rose to an all-time high of $178.66. The latter index reached a 63.79% level over the last year. Such a high increase is attributed to the strong financial performance and strategic direction of the tech giant, especially its successful expansion into cloud services and enterprise software solutions. The growth of the company shares has placed it at the top among the competitive forces in the tech industry.

In recent developments, Oracle extended its operations by collaborating with NTT DATA Japan to strengthen cloud offerings in Japan with the adoption of Oracle Alloy to enhance NTT DATA's cloud capabilities. Oracle's cloud infrastructure will also be integrated into the U.S. Army's Integrated Personnel and Pay System-Army, which is expected to provide cost savings and payroll efficiency.

It also unveiled Oracle Health Clinical Data Exchange, a cloud-based solution to make it easier to transfer medical claims information, further reiterating its long-term vision of building space in the healthcare arena. To strengthen the balance sheet, Oracle raised $6.25 billion in senior notes, whose proceeds were pledged to debt repayment and future acquisitions.

Oracle was also making positive news to the analysts. HSBC increased the price target due to strong performance by Oracle Cloud Infrastructure, while Erste Group upgraded it from Hold to Buy with opinions about its software offerings. The only negative came from RBC Capital, initiating coverage with a Sector Perform opinion because of the risks in Oracle's ability to be competitive in a market dominated by cloud leaders.

InvestingPro Insights shows that Oracle's market cap is at $493.33 billion and $53.81 billion in revenue over the past twelve months. While Oracle is a strong performer, its P/E ratio at 42.95 and at near 52-week highs cautions potential investors. However, Oracle's long dividend history and recent stock return make it an attractive option for the long-term investor.