"Even if you only pay a little attention to the business world, it's been hard to miss Oracle's phenomenal week. The company's shares jumped nearly 40% on Wednesday, and CEO Larry Ellison briefly overtook Elon Musk as the world's richest person (he's now essentially tied). Oracle also signed a staggering $300 billion deal with OpenAI for computing power over the next five years."
"Oracle shares spiked after the company reported fiscal first-quarter earnings Tuesday afternoon. It missed analyst expectations on earnings per share and revenue, but investors looked past that shortfall, thanks to booming cloud demand. Oracle said it has $455 billion in remaining performance obligations (that is, contracted revenue that has not yet been recognized), up 359% from a year ago. Wall Street was expecting that number to be closer to $180 billion."
Oracle's shares surged nearly 40% after fiscal first-quarter results showed surging cloud demand and a massive backlog of contracted revenue. The company reported $455 billion in remaining performance obligations, a 359% increase year-over-year and far above expectations of about $180 billion. Oracle signed a $300 billion, five-year deal with OpenAI for cloud computing capacity, a contract requiring roughly the power used by 4 million homes. The spike in stock value produced a record single-day net-worth gain for Larry Ellison and prompted comparisons to Nvidia's 2023 rally. Some investors and insiders warn that exuberance around AI could be inflating valuations; the stock traded at nearly 50 times forward earnings before a modest pullback.
Read at Fast Company
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