The price of the Oracle shares increased by about 24 % this week, which represents its strongest performance since April 2001, as investors’ reaction was positively due to strong profits and positive expectations for its cloud work.
Almost all the gains came in the two days trading after the release of the quarterly Oracle results, CNBC. The last time the company saw a similar weekly rise during the Dot-Com crash in April 2001, when it was a short-term recovery. On the other hand, Oracle witnessed a decrease in the share price by approximately 50 % in the previous quarter.
The company is no longer behind cloud computing. It has found its position and attracting customers who want to run the burdens of Amnesty International’s work on its systems
“Oracle has an envy on the existence of more demand than he can fulfill,” Joseph Bonner, an Argus Research analyst, told the client on Friday. Investors advised to buy shares and increase their target price for 12 months from $ 200 to $ 235.
On Friday, Oracle shares were closed at a digital increase of $ 215.22.
In announcing her profits late on Wednesday, Oracle reported the revenues and profit that beat analysts’ expectations. SAFRA Catz CEO expected that the financial year sales will top 67 billion, higher than the $ 65.18 billion consensus expectations.
Oracle was racing to catch Amazon, Google and Microsoft
“The request is astonishing,” said the Chairman of the Board of Directors, Larry Ellson, during the profit call. “But we must do this systematically. The reason for the continued demand for the supply is that we can only build these data centers, and build these computers, very quickly.”
In the fiscal year ending May 31, capital spending for the company exceeded $ 21 billion, which is more than its total investment from 2019 to 2024. Katz told investors that spending should reach $ 25 billion in the fiscal year 2026. By comparison, Google plans about 75 billion dollars in capital plans this year, and Microsoft goals for 80 billion dollars.
The Oracle’s Cloud of Cloud now includes major artificial intelligence players such as Meta, Openai, and Elon Musk’s Xai, all of whom depend on NVIDIA graphics processors to train obstetric artificial intelligence models that can produce text, photos and videos of simple claims.
This week, Oracle also added startups, material intelligence and vast data to their cloud collection.
Elson added: “We will build and operate more cloud infrastructure data centers more than all the competitors of the cloud infrastructure combined.”
To date in 2025, Oracle shares have increased by about 29 %, while the Nasdaq compound has gained less than 1 %. Among the best American technology companies, Meta is the best best this year with approximately 17 % increase.
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