Oracle Shares Tumble in 2024 as Earnings Fall Short
Oracle’s stock took a hit after their earnings report, marking their worst day in 2024 so far. The company’s stock dropped 8% following the disappointing news, but it’s important to note that they are still up by about 68% overall this year, making 2024 potentially their best year since 1999.
In their second-quarter earnings report, Oracle reported a slight miss in earnings per share at $1.47, slightly lower than analysts’ predictions. Revenue did see a rise of 9% from the previous year, coming in at $14.06 billion, just below the expected $14.1 billion. Net income also saw a healthy increase of 26%, reaching $3.15 billion.
One bright spot for Oracle has been their cloud services business, showing a strong 12% growth from the previous year, totaling $10.81 billion in revenue, making up a significant portion of their overall revenue at 77%.
While some analysts have noted that Oracle stumbled slightly in their report, most are still optimistic about the company’s future. KeyBank Capital Markets analysts pointed out that although Oracle may have set lofty expectations for itself, they still recommend buying the stock and see continued potential heading into 2025.
Looking ahead, Oracle has forecasted revenue growth in the range of 7% to 9% for the current quarter and expects adjusted earnings per share to be between $1.50 and $1.54. Even though this fell slightly short of analysts’ expectations, there is still confidence in the company’s ability to perform well moving forward.
Oracle’s success in cloud infrastructure has been a key factor in their growth, showing a 52% increase in revenue from the previous year. This puts them in direct competition with other major players in the field like Amazon, Microsoft, and Google, as the demand for cloud computing continues to rise.
Overall, analysts remain positive about Oracle’s future, with many citing the company’s continued cloud momentum and growth potential as reasons for their optimism. As Oracle aims for its best year since 1999, it’s clear that there are many factors contributing to their success and growth in the market.
