Oracle’s AI Cloud Gains Are Undeniable—Now It Must Prove Long-Term Competitive Durability! Assessing the Outlook, Project Stargate Impact & its 4 Key Catalysts !

$50.00 — or $120.00 / year

Oracle’s Q3 FY25 results reinforced strong cloud adoption, with total cloud revenue growing 25% YoY to $6.2B and OCI revenue surging 51%, fueled by a 3.5x YoY increase in GPU consumption. Cloud Database Services rose 28% YoY, supported by expanding multi-cloud partnerships with AWS, Google, and Azure, which now span 18 regions with 40 more planned. RPO jumped 63% YoY to a record $130B, with over 80% tied to cloud services, signaling sustained demand visibility. However, Oracle missed on financials, with revenue trailing by $259M and adjusted EPS missing by $0.02, raising questions about near-term cloud capacity constraints. Notably, these results exclude any contribution from Project Stargate, Oracle’s AI-first infrastructure initiative, which could unlock a multi-billion-dollar revenue stream as AI workloads scale. Management reaffirmed expectations for 50%+ OCI growth in FY25, accelerating in FY26 as new data centers come online. The 25% dividend increase highlights Oracle’s confidence in long-term cash flow durability. While Oracle’s cloud strategy is driving undeniable growth, competitive positioning against hyperscalers remains a key test. Can Oracle sustain its cloud share gains as AI infrastructure demand scales, or will it face margin and competitive pressures from dominant IaaS peers?

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

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  • Alphabet Inc: Can AI Frontier Advances Maintain Search Dominance as Cloud Growth already Hits 18-Month High?

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    Alphabet’s second-quarter results highlight the company’s continued strength in search and cloud services, reflecting solid ad revenue growth and accelerated growth in Google Cloud, driven by AI tools enhancing broader cloud adoption. Despite some challenges, the company’s total revenue increased 14% year over year, with Google search revenue growing 14% to $48.5 billion, led by robust retail demand, particularly in Asia. Alphabet has also seen early success with AI overviews within search results, improving user satisfaction and ad performance. While YouTube advertising growth slowed to 13%, this was partly due to tough comparisons from the previous year. Operating margins improved to 32% from 29% last year, thanks to cost controls and reduced SG&A expenses, despite increased capital spending on compute infrastructure. Alphabet’s dominance in the online search market, with over 90% global share, positions it well to maintain leadership despite competition from Microsoft’s AI-enhanced Bing. Google’s vast ecosystem, data collection capabilities, and technological innovation provide a strong foundation for its advertising services, driving efficiency and relevance. The company’s strategic use of AI in search results and other offerings ensures continued user engagement and advertiser value. In addition to search, Google Cloud has become a significant growth driver, with the firm leveraging its private cloud expertise to expand into the public cloud market, creating additional revenue streams and operational leverage. Alphabet’s investments in futuristic projects, such as Waymo’s autonomous car technology, represent potential long-term growth opportunities, targeting markets valued in the tens of billions of dollars. Google’s ability to offer highly relevant search results and monetize its technology-based intangible assets, from traditional algorithms to advanced AI, underscores its competitive edge. While generative AI introduces some uncertainty, Google’s extensive data collection and user base enhance its capacity to deliver contextual advertising, potentially increasing ad spending per click

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