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What’s happening: Shares of Oracle Corporation surged on Tuesday, after the company released the results for its fiscal first quarter.
What happened: The software giant reported better-than-expected sales and earnings for the latest quarter.
Oracle also announced partnerships with Google Cloud and Amazon’s AWS, which resulted in the stock hitting a record high on Tuesday.
How were the results: The Austin-based company reported single-digit growth in sales for the first quarter of fiscal 2025.
Why it matters: Although Oracle made a late entry into the cloud business, its massive AI push resulted in several companies choosing its software for streamlining their operations.
Revenues from the company’s cloud products, which is considered a cheaper alternative to Amazon’s AWS and Microsoft’s Azure, jumped 21% to $5.6 billion during the latest quarter.
Oracle said Cloud Infrastructure (IaaS) revenues jumped 45% to $2.2 billion, while Cloud Application (SaaS) revenues gained 10% to $3.5 billion. Fusion Cloud ERP revenues grew by 16% to $900 million, while NetSuite Cloud ERP revenues climbed 20% to $900 million.
Total RPOs (remaining performance obligations) grew by a whopping 53% to $99 billion, accelerating from 44% in the previous quarter. “That strong contract backlog will increase revenue growth throughout FY25, CEO Safra Catz said.
Catz added that the “biggest news of all” was the agreement signed with Amazon Web Services. “AWS customers will get easy and convenient access to the Oracle database when we go live in December later this year,” she stated.
Oracle had inked a similar agreement with Google Cloud in June.
Management guided to non-GAAP earnings of $1.45-$1.49 per share for the fiscal second quarter, higher than the current consensus estimate of $1.47.
How shares responded: Oracle’s shares surged 11.4% to close at $155.89 on Tuesday, after climbing to a record intraday high of $160.52 during the session. The stock has added around 50% year to date.
What to watch: Investors will continue monitoring the company’s push into AI, which is expected to provide a further boost to its overall results ahead.
Context: The GBP/USD forex pair edged higher on Wednesday, as investors assessed the latest economic data.
Details: Data released on Tuesday showed the number of people employed in the UK rose by 265,000 during the three months to July, compared to a 97,000 gain in the previous period. The figure also came in higher than market expectations of 115,000. The unemployment rate declined to 4.1% in the three months, from 4.2% in the previous period. Regular pay, which excludes bonuses, rose 5.1% year-over-year during the three months to July, recording the least increase since June 2022.
The Bank of England has lowered its benchmark interest rates in August and is widely expected to cut rates again in November.
Some weakness in the US dollar lent support to the GBP/USD forex pair this morning. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell around 0.2% to 101.45.
The GBP/USD forex pair added 0.1% to reach 1.3092 this morning. London’s FTSE 100 shed 0.78% to close at 8,205.98 on Tuesday.
What to watch: Investors await the release of economic data on industrial production, balance of trade and GDP from the UK today. Industrial production in the UK, which grew by 0.8% in June, is expected to increase by 0.3% in July.
UK’s trade deficit, which shrank to £5.32 billion in June, is projected to narrow further to £4.8 billion in July. Analysts expect GDP growth to come in at 1.4% year-over-year in July, accelerating from a 0.7% expansion in June.
Other Markets: US trading indices closed mixed on Tuesday, with the S&P 500 and Nasdaq 100 up by 0.45% and 0.90%, respectively, and the Dow Jones index down by 0.23%.
The US and UK accused Iran of sending ballistic missiles to Russia to use in its war against Ukraine. The news sent the RUB/USD pair slightly higher in forex trading this morning.
China’s vehicle sales fell by 5.0% year-over-year to 2.45 million units in August, which exerted pressure on the CNY/USD forex pair.
South Korea’s unemployment rate declined to 2.4% in August, from 2.5% in the previous month. The jobless rate falling to the lowest level in a year sent the KRW/USD pair higher in forex trading this morning.
New Zealand’s number of visitor arrivals rose 3.8% year-over-year to 221,837 in July, lending support to the NZD/USD forex pair.
The American Petroleum Institute said that US crude oil inventories had contracted by 2.79 million barrels in the week ending September 6. This sent WTI crude oil prices higher this morning.
UK’s goods trade balance and manufacturing production, Turkey’s retail sales, US MBA mortgage applications, inflation rate, crude oil inventories, gasoline stocks change and distillate stocks, Mexico’s industrial production, Russia’s balance of trade and consumer price index, China’s new yuan loans, money supply M2, value of loans and loans to private sector, as well as Argentina’s inflation rate.
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