Oracle stock climbs on cloud deals with Google, OpenAI
What specific cloud deals did Oracle announce with Google and OpenAI?
Oracle announced a partnership with Google and OpenAI to extend Azure AI to Oracle Cloud Infrastructure (OCI) to provide additional capacity for OpenAI. This deal involves interconnecting Google Cloud with Oracle, allowing customers to deploy workloads in Google and Oracle cloud data center regions without being subject to data-transfer charges. Additionally, Oracle said its database software would be available in five additional Azure regions, bringing the total to 15.
How did Oracle's stock react in the pre-market trading following the announcement of these deals?
Oracle's stock rose in pre-market trading after announcing cloud deals with Google and OpenAI. The shares were up by about 7%. This increase was despite the company missing on earnings and revenue in the fourth quarter. The positive market reaction can be attributed to the significant partnerships and the potential growth they bring, as well as the company's strong positioning in the AI race.
Despite the positive news on cloud deals, in which areas did Oracle miss the mark in their fourth quarter earnings and revenue?
Oracle missed the mark in their fourth quarter earnings and revenue as they did not meet the consensus estimates. The company reported a 5% increase in total revenue, reaching $12.9 billion, which essentially matched estimates at $12.47 billion. However, they missed consensus estimates by $20 million, which equates to one enterprise deal that slipped out of the quarter. Additionally, cloud license and on-premise license revenues saw a decline of 18% to $1.2 billion.