Bernstein likes Oracle ‘even excluding A.I.’ after its Q4 results

Oracle Corporation (NYSE: ORCL) is trading up in extended hours after reporting better-than-expected results for its fourth financial quarter.

Oracle stock up on strong cloud revenue

Investors are particularly cheering a whopping 54% increase in its cloud revenue that handily topped Street estimates by an impressive four percentage points. On CNBC’s “Worldwide Exchange”, Bernstein’s Mark Moerdler said:

For years, many believed it was a laggard in shift to cloud. The reality was very different. We like the setup and the opportunity for the company on numerous levels even excluding A.I.

Over 30 A.I. development companies have committed to buying more than $2.0 billion of capacity in its Gen 2 Cloud, as per the earnings press release.

Moerdler currently rates Oracle stock at “overweight”.

Oracle to expand its footprint in A.I.

Oracle has recently partnered with Cohere reportedly to integrate generative artificial intelligence tools into its cloud. According to the Bernstein analyst:

From an investor perspective, it’s a game changer. They built an interesting cloud fabric to deliver high performance A.I. for large language models and it is in no one’s estimates.

Earlier this year, Oracle extended its collaboration with Nvidia as well. Moerdler finds it conceivable that the multinational steals some market share from Google Cloud moving forward.

At writing, the tech stock is up roughly 45% versus the start of the year.

Notable figures in Oracle Q4 results

• Earned $3.32 billion versus the year-ago $3.19 billion
• Adjusted EPS also climbed from $1.54 to $1.67
• Revenue jumped 17% year-on-year to $13.84 billion
• Consensus was $1.58 a share on $13.74 billion revenue

For the full year, Oracle reported a record $50 billion in revenue. It’s expected to issue guidance on the earnings call.