Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Oracle: Lukewarm Results “TikTok”ing Uncertainty—Can Strategic Capex & Leadership in Training AI Models Secure LT Growth Over the Next 3 Years?
Oracle’s Q2 FY2024 results reflect both robust execution in cloud infrastructure and tempered expectations amid near-term uncertainties. Total revenue grew 9% YoY to $14.1 billion, missing consensus but within guidance, as Oracle Cloud Infrastructure (OCI) sales surged 52%, driven by strong GPU-powered AI workloads and marquee clients like Meta and OpenAI. Remaining Performance Obligations (RPO) climbed 50% YoY to $97 billion, underscoring deep customer engagement and multiyear contracts, while cloud database services grew 28% to $2.2 billion in annualized revenue, reflecting steady enterprise adoption. Margins remained stable, with non-GAAP EPS up 10% to $1.47, as disciplined cost management supported profitability. However, slightly soft guidance and TikTok’s regulatory overhang, which could impact Oracle’s cloud revenue, led to a 6.7% share drop. Despite these pressures, Oracle’s $3.97 billion CapEx investment underscores its commitment to scaling AI infrastructure, with partnerships and multi-cloud strategies expanding its addressable market. The company’s ability to deliver AI and multi-cloud solutions with superior cost-performance positioning offers a compelling long-term narrative. With cloud revenue on track to surpass $25 billion this fiscal year, Oracle is well-placed for sustained growth. Can Oracle maintain its leadership in AI and cloud services while navigating TikTok-related uncertainties and competitive pressures to secure long-term market share and shareholder returns?
