11. Oracle Corporation (NYSE:ORCL)
Oracle Corporation (NYSE:ORCL) is one of the stocks mentioned during the show, as we cover everything Jim Cramer said about the market. During the lightning round, a caller inquired about the stock, and here’s what Cramer had to say in response:
Well, look, I mean, why take the risk?… It’s good, Oracle’s good, but I think there are others that are better. And the one that is better that I think is worth doing right now is NVIDIA. It’s down huge from its top, huge.
Oracle Corporation (NYSE:ORCL) provides cloud and on-premise software, databases, and IT infrastructure to help businesses manage operations. Cramer discussed the company’s latest quarter during the March 11 episode and said:
So last night we got this tremendous quarter from Oracle that allowed the stock to pop 9% today, even as the market rolled over, and that was a very pleasant surprise… Oracle shot the lights out. Not only did they deliver a sizable top-line beat with 22% revenue growth, but every division posted better than expected sales except for hardware, which is their smallest unit… For at least the next 10 months, we won’t have to worry about the company piling one more debt to pay for its AI data center buildout. That’s a very big win… Hey, speaking of the backlog, Oracle mentioned that most of the increase in their remaining forms of obligation, their bookings, was “related to large scale AI contracts where Oracle does not expect to have to raise any incremental funds to support these contracts as most of the equipment needed is either funded upfront via customer prepayments so Oracle can purchase the GPUs, or the customer buys the GPUs and supplies them to Oracle”… I really like the flexibility of it…
Now, there was one more thing to this quarter that I’d love to cover if I have more time. Management came out with a great rebuttal to all this talk of a software-as-a-service apocalypse… Remember, while Oracle’s got a huge business building data centers, this used to be a pure play on an enterprise software company, and they still do a ton of software business, so they have a very good read on what’s happening here. Of course, there are still some lingering concerns that they could hurt the stock, especially the $20 billion at the market equity offering that might do some damage to the share price.
That said, the stock only ran up more than 9% today despite the spectrum of that offering. So, it might not make the dent you think. Let me give you the bottom line here: A win is a win, and this latest quarter was a big win for Oracle, a stock that’s been synonymous with AI data center worries since last fall. In a crazy, unpredictable environment… this is one theme that’s just holding on fine. Oh, and those myriad hedge funds who bet against it, they have felt the wrath of Founder, Chairman, and Chief Technical Officer Larry Ellison, which, trust me, is a lot worse than even the Wrath of Khan.
We recently discussed Guggenheim’s coverage of the stock. You can read about it here.
