Oracle co-founder, chairman and chief technology officer Larry Ellison speaks at the Oracle OpenWorld conference in San Francisco on October 1, 2017.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
Larry Ellison turned 80 last month. This is a year worth celebrating.
While other traditional technology players Intel and Cisco Oracle has become a Wall Street darling as it struggles to gain a foothold in a world increasingly driven by the promise of artificial intelligence.
The stock surged 11% on Tuesday after reporting a better-than-expected earnings report after the close on Monday. The stock had a strong performance on Wednesday, closing at a record $157.10. Driven by the company’s cloud business, Oracle has achieved double-digit growth in each of its three quarterly reports this year. The stock didn’t post double-digit gains last year and has only double-digit gains in 2022.
Guggenheim analysts titled its post-earnings headline “Excitement is Back,” emphasizing “momentum across all businesses.”
Oracle’s stock price has risen 49% this year, second only to the artificial intelligence chip maker NVIDIA — rose 136% among large-cap technology stocks. The second best player in the group was Yuanup 45%.
At the same time, Intel’s market value has shrunk by 60%, and Cisco’s market value has also fallen by nearly 3%. Both companies announced massive layoffs in their earnings reports last month.
The biggest financial winner from Oracle’s rise is Ellison, who founded the software company in 1977 and remains chairman. According to statistics, he owns more than 40% of outstanding shares, and his net worth has increased to $192 billion. Forbes. only Tesla CEO Musk ($251 billion) and Amazon founder Jeff Bezos ($202 billion) are even richer.
By high-growth tech standards, Oracle is still pretty slow.
Revenue in the latest quarter increased 8% year over year to $13.31 billion. Chief Executive Safra Catz said on an earnings call that growth in the current period is expected to be between 8% and 10%.
The New York Stock Exchange welcomed Oracle (NYSE: ORCL) to the podium on July 12, 2023. To mark the occasion, Chief Executive Officer Safra Catz rang the Opening Bell® alongside NYSE President Lynn Martin.
New York Stock Exchange
Since 2011, Oracle has only had one year of double-digit revenue growth (18% growth in fiscal 2023), and the company’s revenue has shrunk fourfold.
“After 13 years of single-digit organic revenue growth, Oracle is re-accelerating its entry into
JMP analysts wrote in a note on Tuesday that they upgraded their rating to buy from hold.
Oracle is currently in the midst of its open world The conference ends Thursday in Las Vegas. Between earnings reports and annual events, investors expressed appreciation for the company’s cloud story, including its infrastructure business and repository.
Although Oracle still lags far behind Amazon Web Services, Microsoft and Google Judging from the cloud infrastructure market share, this business has become a major growth driver for the company. The division’s revenue surged 45% to $2.2 billion in the quarter from a year earlier.
In addition to competing with top cloud companies, Oracle is increasingly partnering with them.
A year ago, Ellison visited Microsoft’s headquarters outside Seattle for the first time to announce a partnership with a company he had competed with for more than 30 years.
On Monday, Oracle said its database software will be available to AWS customers on Oracle hardware in Amazon data centers. Oracle has struck such deals with three major cloud infrastructure providers in the past year.
“We believe our cloud partnerships with AWS, Microsoft and Google will drive growth in our database business in the coming years,” Ellison said on Monday’s earnings call.
Oracle did not immediately comment on the matter.
“No more passwords”
For years, Ellison has described Oracle’s database as “autonomous,” capitalizing on the hype surrounding self-driving cars (he was a former Tesla board member and close to Musk) and the emergence of artificial intelligence. Its product requires no manual patching and no downtime, something Allison said no other cloud provider can do. But he’s benefited from playing well lately.
after many years While criticizing AWS at the event, Ellison decided to ensure customers had access to Amazon’s market-leading cloud and Oracle’s full-featured database.
AWS CEO Matt Garman told CNBC in a recent interview: “Certainly, customers have been able to use Oracle within AWS for a long time.” Garman said the new product will allow customers to easily register, perform backups and backups in the AWS third-party software market. Data is transferred to AWS analytics tools.
Garman, who succeeded Adam Selipsky as AWS CEO in June, added that customers have been asking the two companies to figure out how to work more closely together.
As Ellison dives deeper into artificial intelligence and into his 81st year on Earth, he’s now embracing passwords that he calls “completely ridiculous” because they’re not secure and could be “easily hacked.”
“This is how you log in,” Ellison said on the earnings call. “I’m going to type in Larry.Ellison@oracle.com and the computer will look at me and say, ‘Okay, hey Larry.’ We’re done.
He went on to say that Katz could recognize him and so could his children, so there was no reason his computer couldn’t recognize him.
“No more passwords,” he said. “Those have to go.”
watch: Oracle is becoming the fourth cloud vendor
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