{"id":1440307,"date":"2025-07-09T08:19:24","date_gmt":"2025-07-09T06:19:24","guid":{"rendered":"https:\/\/www.payoff.ch\/news\/oracle-americas-new-high-flyer"},"modified":"2025-07-09T09:50:28","modified_gmt":"2025-07-09T07:50:28","slug":"oracle-americas-new-high-flyer","status":"publish","type":"post","link":"https:\/\/www.payoff.ch\/en\/news\/oracle-americas-new-high-flyer","title":{"rendered":"Oracle: America’s new high-flyer"},"content":{"rendered":"\n

The Nasdaq has a new darling: Oracle<\/strong><\/a>. Following the interim low for US technology stocks in mid-April, the share price staged a dynamic rebound. Starting on April 22, the share price soared by 83%. This means that Oracle’s share price recovery was a full 60 percentage points higher than the market as a whole. But that’s not all: even the AI high-flyer Nvidia<\/strong><\/a> had no chance against the software company with a gain of 56%.<\/p>\n\n\n\n

High growth rates<\/h3>\n\n\n\n

A look at the company’s books shows that the steep rise is not a wild “gamble”, but is entirely justified. The Texan company is currently booming, particularly in the data cloud sector. The software company increased its turnover by 11% in the fourth quarter of the 2024\/25 financial year (May 31), with the cloud business even recording an increase of 27%. Collaborations with the world’s leading cloud providers Amazon<\/a><\/strong> Web Services (AWS), Microsoft<\/a><\/strong> Azure and Google<\/a><\/strong> Cloud had a positive impact. Revenues from this collaboration more than doubled in the fourth quarter of 2024\/25 compared to the previous quarter. Oracle CEO and founder Larry Ellison expects the triple-digit growth rates to continue in the coming months. At USD 15.90 billion, total revenue for the quarter ending May 31 also exceeded analysts’ estimates of USD 15.59 billion.<\/p>\n\n\n\n

For the financial year 2025\/26, Oracle now expects total revenue of at least USD 67 billion. The new forecast predicts annual revenue growth of around 16.7%, compared to the previous forecast of 15% growth. “We expect our overall cloud growth rate, applications plus infrastructure, to increase from 24% in fiscal 2025 to over 40% in fiscal 2026,” said CEO Safra Catz. <\/p>\n\n\n\n

Investing in the future<\/h3>\n\n\n\n

The company’s growth is significantly supported by the Oracle Cloud Infrastructure (OCI) solution and the support of AI workloads. A strategy that is well received by experts: “Oracle’s confidence in Oracle Cloud Infrastructure (OCI) sales is well founded,” explains Rebecca Wettemann from industry analyst Valoir, adding: “The multi-cloud approach and the increasing reliance of Oracle Enterprise Application Cloud customers on OCI to support their enterprise data requirements are key drivers.” <\/p>\n\n\n\n

According to Oracle, it also offers the only database that can make all customer data immediately available for all common AI language models in any data cloud, while guaranteeing full data privacy for customers. As a result, the company’s market share in the database sector is expected to continue to grow as the use of AI increases. Oracle is investing heavily in order to meet the high demand. In the current financial year, more than USD 25 billion is to be invested in building up additional capacities. <\/p>\n\n\n\n

Oracle is also involved in OpenAI’s “Stargate” AI project. There have recently been reports that additional computing power of 4.5 GW is needed in Oracle’s US data centers. The existing Stargate center in Abilene is therefore to be expanded from 1.2 to 2.0 GW and additional data centers are also to be built in several US states. According to the reports, the agreement is part of a cloud contract with an annual volume of USD 30 billion, which Oracle had already recently announced. <\/p>\n\n\n\n

Price targets go up<\/h3>\n\n\n\n

The cloud boom is also expected to significantly boost the company’s profits. Analysts expect earnings per share to increase by 56% in the current financial year and by more than a fifth in the following two years. This contrasts with a 2028 P\/E ratio of 23.6, which leaves plenty of room for improvement. More and more analysts see it that way. Several research houses have raised their price targets in recent days: Davidson from USD 170 to USD 220, TD Cowen from USD 225 to USD 250 and Jefferies from USD 220 to USD 270. <\/p>\n\n\n\n

Investment solutions<\/h3>\n\n\n\n

Positive traders can bet on a further leveraged climb with the Long Mini Future (ISIN: CH1452898278<\/a><\/strong>)<\/a> from BNP Paribas, which was recently listed on Swiss Dots. The product has a leverage of 4.7 and a stop loss of USD 200.38, a good 14% away from the current price level. The ORCWNZ<\/a><\/strong><\/a> call warrant from ZKB, which is listed on SIX, would also be a suitable product for achieving disproportionately high profits in a further upward trend. The strike is at USD 270, which means that the warrant is still “out of the money”. The leverage is 5.3 and the term ends in June 2026.<\/p>\n\n\n\n

If, on the other hand, the stock should take a breather, the Barrier Reverse Convertible RORAHV<\/a><\/strong><\/a> from Bank Vontobel would be a suitable product. The partially protected security yields a return of 6.3% p.a. with a risk buffer of a whopping 60.7%. The term ends on June 2, 2026.<\/p>\n\n\n\n

\"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

The US software group is fully committed to the two megatrends of cloud and AI and is boasting surprisingly high growth rates. This development is being rewarded on the stock market with significant share price premiums. <\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ngg_post_thumbnail":0,"footnotes":""},"categories":[222],"tags":[],"class_list":["post-1440307","post","type-post","status-publish","format-standard","hentry","category-trading-desk-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts\/1440307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/comments?post=1440307"}],"version-history":[{"count":6,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts\/1440307\/revisions"}],"predecessor-version":[{"id":1440325,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/posts\/1440307\/revisions\/1440325"}],"wp:attachment":[{"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/media?parent=1440307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/categories?post=1440307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.payoff.ch\/en\/wp-json\/wp\/v2\/tags?post=1440307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}