Now is a good opportunity to buy software stocks. The exchange-traded fund has fallen 19% to $88 from its peak of $110 in December, mainly due to worries about the economic effects of President Donald Trump's tariffs. This makes software stocks more appealing for investors looking for a sector with solid earnings growth.
According to Bloomberg News, Oracle Corp is talking with the Indonesian government about setting up a cloud services center on Batam Island. This information comes from sources who are knowledgeable about the situation.
Tech billionaire Larry Ellison's company, Oracle, is said to be a top choice to manage TikTok. This comes as the Trump administration seeks to arrange a sale to prevent the app, which is owned by a Chinese company, from being completely banned.
Look into Oracle's (ORCL) global revenue patterns and how these figures influence Wall Street's predictions and the future of the stock.
SMCI is set to expand with new data center capacity and AI projects. Oracle's latest Q3 2025 earnings showed a strong demand for cloud services, with its backlog increasing to $130 billion. While analysts are somewhat doubtful, Oracle's forecasts could help achieve its $40 billion revenue target for the fiscal year 2026, and customers might start switching to Blackwell GPUs in Q3 2025, prompting SMCI to increase production to satisfy demand after a drop in inventory.
Oracle's Q3 FY2025 results reveal significant revenue growth, with cloud services rising by 10% year-over-year and total revenue increasing by 6% year-over-year to reach $14.1 billion. Even though free cash flow was negative, Oracle raised its dividend and bought back $150 million in shares, showing confidence in future cash flow improvements. Additionally, Oracle's remaining performance obligations (RPO) jumped to $130 billion, a 63% year-over-year rise, fueled by strong demand and not including Project Stargate's contributions.
Oracle Financial Services is enhancing its Investigation Hub Cloud Service by introducing new AI capabilities that can minimize manual tasks and speed up the detection of financial fraud. These AI agents automate the investigative processes, allowing financial institutions to identify complex patterns more efficiently. By using generative AI to create narratives, the agents also support investigators in analyzing suspicious activities more effectively.
The large Stargate project is attracting interest and splitting opinions among investors. The article titled "Waiting For Stargate Liftoff: Oracle Eyes Megaproject To Restart Stock Rally" was published by Investor's Business Daily.
Parnassus Investments, an investment management firm, published the investor letter for the "Parnassus Core Equity Fund" for the fourth quarter of 2024. You can download the letter here. During this quarter, U.S. stocks increased, finishing a strong 2024, but the Fund (Investor Shares) only grew by 0.28% after fees, which was less than the performance of the S&P 500 Index.
Oracle's AI Cloud is experiencing a significant increase in demand, indicating great opportunities for future growth, even though its share price recently fell by 16%. The company's Q3 earnings had slight misses in EPS and revenue, but the strong growth in cloud revenue and positive future outlook support my optimistic view. Valuation indicators imply that Oracle is undervalued, and I think its shares should be priced 20% higher than the average forward P/E ratio in the sector.