Oracle Jumps Most in Six Months as Cloud Sales Show Momentum
Summary
Oracle Corp. shares jumped the most in six months after the company reported results suggesting its effort to move customers to the cloud is gaining momentum and the acquisition of health care records provider Cerner Corp. will help accelerate growth. Economic headwinds like inflation and currency volatility could lead to corporate cost-cutting that may help drive cloud adoption, JPMorgan’s Mark Murphy said ahead of the results. Oracle is hoping its $28.3 billion acquisition of Cerner, completed last week, will build inroads in the health care industry, which has been comparatively slow to adopt cloud technology. During the call, co-founder and Chairman Larry Ellison said health care is “clearly going to be our largest business.” The deal will be accretive to Oracle’s earnings in fiscal year 2023, Catz said. Oracle’s biggest positive surprise was in license spending, which reflects continuing investment from the company’s customers in uncertain times, Rana, of Bloomberg Intelligence, said in an interview.
