Bloomberg Daybreak Weekend: US CPI, PPI Preview
Bloomberg Daybreak Weekend with Tom Busby takes a look at some of the stories we'll be tracking in the coming week. • In the US – a preview of U.S CPI and PPI data, along with earnings from Oracle and Adobe. • In the UK – a preview of European Central Bank Chief Christine Lagarde addressing central bankers. •In Asia – a recap of China's NPC and outlook for its' economy.
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6 hours ago
- Yahoo
Why Oracle Rallied Today for the Second Day in a Row
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Yahoo
9 hours ago
- Yahoo
Oracle Stock (ORCL) Delivers Strong Quarter as Cloud and AI Strategy Pays Off
Oracle (ORCL) has just wrapped up its quarterly reporting period with impressive results. Revenue rose 11% year-over-year to $15.9 billion, beating expectations with ease. Non-GAAP earnings per share came in at $1.70, topping the consensus estimate of around $1.65. In my view, Oracle's bold investments in Cloud services—particularly Oracle Cloud Infrastructure (OCI)—are clearly bearing fruit. I'm bullish on the stock, as Oracle continues to demonstrate resilience and leadership in both Cloud and AI. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Oracle's Cloud segments were the clear standouts in Q4. Total Cloud revenue—which includes both Infrastructure as a Service (IaaS) and Software as a Service (SaaS)—jumped 27% year-over-year to roughly $6.7 billion. The real highlight was Oracle Cloud Infrastructure (OCI), which surged 52% to reach $3 billion, underscoring Oracle's aggressive push to capture AI-heavy workloads in the Cloud Infrastructure space. A key driver behind Oracle's Cloud momentum is its smartly executed multi-cloud strategy. On the earnings call, Larry Ellison revealed that Oracle's MultiCloud database services—used by customers on Amazon (AMZN), Microsoft Azure (MSFT), and Google Cloud (GOOGL)—soared 115% quarter-over-quarter. This approach is savvy, as it turns would-be rivals into collaborators. With enterprise demand rising for hybrid and multi-cloud solutions, Oracle is carving out a distinct competitive edge among the major cloud providers. One of the key reasons I'm bullish on Oracle's long-term growth is its record-high backlog of contracts, formally known as Remaining Performance Obligations (RPO). This quarter, RPO surged 41% year-over-year to an all-time high of $138 billion. 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While these substantial investments did put some pressure on margins—non-GAAP operating margin dipped slightly to about 44%, down from 47% last year—I view this as a reasonable and strategically sound tradeoff. Crucially, Oracle remains solidly profitable and financially strong. Operating cash flow for the year reached an impressive $20.8 billion, providing the company with ample capacity to reinvest in future growth. Management made it clear on the earnings call that these upfront investments are designed to drive high-margin, recurring revenue over time, essentially laying the groundwork for long-term profitability. With around $18 billion in cash and short-term investments, Oracle appears to have the financial flexibility to fund its expansion without overburdening its balance sheet. While I'm optimistic about Oracle's growth potential, it's essential to acknowledge the risks. Management's aggressive expansion strategy hinges on flawless execution and sustained demand. If enterprise IT spending slows, if overall demand for public Cloud services weakens, or if customers shift more quickly toward AWS or Azure, Oracle's growth trajectory could face headwinds. Additionally, Oracle is making significant capital investments while also aiming to deliver strong returns to shareholders. This high-stakes approach means that any misstep or shortfall in demand could result in the company having costly, underutilized infrastructure. However, given Oracle's recent track record, management's demonstrated competence, and the sheer scale of its secured backlog, I believe these risks are manageable and well within the company's capacity to navigate. On Wall Street, Oracle has a consensus Moderate Buy rating based on 15 Buys, 12 Holds, and zero Sells. The average ORCL price target of $192.91 indicates a 3.5% downside potential over the next 12 months. This means that, despite the company's current operational and financial strengths, the market has likely priced Oracle stock too high in the short term. It's probably best to wait for a pullback before buying shares. Oracle's quarterly results strengthen my confidence in the sustained upward trajectory of Oracle's operating model. What was once a bold and uncertain Cloud transformation is now clearly delivering results. Oracle's heavy investment in OCI, its strategic focus on multi-cloud architecture and partnerships, and its sizable backlog of signed contracts all point to long-term, market-leading growth that appears both durable and well-earned. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
17 hours ago
- Miami Herald
Federal Reserve, White House interest-rate cut battle heats up
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Federal Reserve Board Chair Jerome Powell has been the target of President Trump's usual brash manner towards opponents. The president has taunted the chairman with a string of nasty names and other insults. The most recent invective: "Numbskull.'' Trump's ratcheting rhetoric includes allusions to installing a "shadow" Fed president until Powell leaves on or before his term expires in May 2026. Powell has been mum about his gig and the president's efforts to squeeze him out of hisThe Federal Reserve's dual mandate is to set monetary policy that keeps inflation and unemployment low at the same time. This is often at odds because high interest rates lower inflation but cut jobs. Lower interest rates decrease unemployment rates but increase inflation. The central bank's Federal Open Market Committee, meeting June 17-18, controls the Federal Funds Rate that banks charge each other overnight to borrow money. 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Raphael W. Bostic, president and chief executive officer of the Federal Reserve Bank of Atlanta, said in a recent conference call with reporters that he's "very cautious about jumping to cuts at this point." Bank of America analysts, in a note to clients, said it was unlikely there would be additional cuts to the Federal Funds Rate in 2025 but added that 2026 looked promising. While market watchers expect the Federal Reserve to cut interest rates by 1% next year, the White House is maintaining that the cuts must come now. Related: Bank of America unveils surprising Fed interest rate forecast for 2026 Trump said a drop in interest rates, coupled with his "One Big Beautiful Bill" being chewed over by Congress, would boost the tepid economy. The lagging housing market would get an especially big boost. American consumers have embraced the tariffs with China, Mexico, Canada, and the trade wars, the Trump administration says. Not so fast, say economists, who maintain that tariff-driven lags could start to drag the prices of goods and services in 30 to 90 days as manufacturers and retailers pass the costs onto their customers. Powell is one of the few government officials the president can't fire or 'DOGE' from a job. Trump compensates by slamming Powell with derogatory nicknames like "Mr. Too Late" and a "Major Loser" for the Fed's cautious approach to a rate cut. The president is so ticked that he's threatened to install a "shadow president" to ride out Powell's remaining days. By nominating a new Fed head before Powell's term expires, the expectation is that Powell will resign. Multiple names have bubbled up for that role, with the latest being Treasury Secretary Scott Bessent who's actually been on the same pipe as Trump stoking for a Powell exit. There's no comment from the Fed on the FOMC meeting or Powell on the president. Expectations are interest rates will remain the same in June after the FOMC meets. Central banks in China, Switzerland, the U.K., Japan and Brazil are also expected to decide on interest rates in the coming days. Related: Fed Chair hit with savage message on interest rates The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
