Oracle stock belongs to the technology sector of the stock market. You can invest in this asset by first studying the company's financial performance and analysts' forecasts. The corporation has a reputation as a stable software developer, so it can be considered a good option for long-term investment.
Oracle is an American software developer based in Texas, USA. The company was founded in 1977 and was originally called Software Development Laboratories. Its founders were Larry Ellison, Bob Miner, and Ed Oates. Its flexibility and thoughtful business model allowed the developer to develop into an international cloud technology provider.
The company's IPO took place in 1986. Oracle stock sold for $20 on the first day of trading. Since its listing on the stock exchange the software developer's securities have gone through several times the procedure of splitting. Now the asset is available to retail and institutional investors under the ticker ORCL.
Oracle is considered one of the world's largest developers of database management software. Much of its development was originally intended to be installed on-premises. Later, however, the IT company adjusted to the changing trends of the software market and moved on-premises solutions to cloud services.
Over the past 10 years, the company has been actively working to expand its list of products and services. Oracle expands cloud databases, develops infrastructure, and introduces new services for enterprise resource planning and human capital management. In addition, the corporation is expanding through the purchase of new organizations. Over the past decade, the IT giant has acquired more than a dozen companies.
Buying new companies allows Oracle to expand its ecosystem with enterprise resource planning services. The software developer has also boosted its reach in the healthcare market through its 2021 acquisition of Cerner. The company has an already-built infrastructure and is designed to help Oracle accelerate revenue growth and boost adjusted EPS.
In the first quarter of fiscal 2023, the technology giant spent $559 million to buy back Oracle stock. The company says it has now repurchased about half of the securities issued over the past decade. Oracle has also been paying dividends to shareholders since 2009, so $860 million was spent on dividend payments during the quarter.
Oracle's fiscal year is not the same as the calendar year. In September 2022, the company released a financial report for the first quarter of 2023, which ended on August 31, 2022. Revenue of the IT giant for the three months was $ 11.45 billion, up 18% compared to the results for the same reporting period last year. According to this indicator, the corporation met the expectations of analysts.
The company's adjusted net income decreased by 4% and amounted to $2.83 billion, while adjusted earnings per share of Oracle was $1.03, almost unchanged year on year. On GAAP, the cloud technology developer's net income declined 37 percent year over year. That figure was $1.55 billion, or $0.56 per diluted Oracle share, in the first quarter of 2023.
The software developer's cloud services generated total revenue of $3.6 billion in the first quarter of 2023, a 50% year-over-year increase in constant currency terms. Excluding Cerner, quarterly revenue from cloud-based services was $3.1 billion, an increase of 29%.
An AI-based program was used to make the forecast for Oracle stock. In 2023, Wall Street analysts forecast quotes of $74. That's an average of $72 to $77. For 2025, analysts predict an increase in Oracle's stock price to $300. If the corporation maintains its growth rate, quotes could exceed the $430 price mark by 2030.
In March 2020, Oracle stock was trading at $48. After the coronavirus pandemic began, the value of the corporation's securities began to rise, which was due to the active movement of business online due to lockdowns.
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In September 2021, the price of Oracle stock was $86. As of September 16, 2022, this company was quoted at $70.
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