Oracle Stock Soars on Partnership with AWS
Oracle’s infrastructure stocks soared nearly 10% in after-hours trading on Monday following the announcement of a new strategic partnership with Amazon Web Services (AWS), the largest player in cloud computing.
It means enabling Oracle’s customers to run their database services on AWS infrastructure, providing companies with a seamless experience that benefits from the high value of both platforms.
It will ease data management and integration across various cloud platforms and reduce the challenges of data migration. It shall provide a single support system for all. This deal may lure in verticals that have data at the heart of their infrastructure stocks businesses, such as finance, healthcare, telecoms, and retail, especially due to increased cloud flexibility and efficiency.
Oracle Stock Price Leaps Higher After Partnership
Oracle corporation stocks witnessed a soar 9.25% to $152.81 per share in after-hours trading after the deal was announced. Earlier in the day it fell 1.34% to $139.89, valuing the company at an estimated $385.52 billion. This year, Oracle’s stock is up about 34% compared with a gain of about 15% in the S&P 500.
We see huge demand from customers that want to use multiple clouds,” said Larry Ellison, Oracle’s chairman and chief technology officer. He went ahead to reiterate how important the partnership will be for both the companies: “With Oracle cloud infrastructure deployed inside AWS data centres, we can provide customers with the best possible database and network performance.
AWS, Amazon’s cloud computing business, provides nearly 240 services around the world, from computing and storage to artificial intelligence. AWS leads the cloud infrastructure market, commanding 31% market share, followed by Microsoft Azure at 25% and Google Cloud at 10%.
Cloud Market Sees Growth amid Rising AI Demand
But the new joint effort between Oracle and AWS arrives as more businesses are looking to shift operations to the cloud amid demand for AI, data analytics, and other emerging technologies. Indeed, the global cloud computing market-which was valued at $602.31 billion last year-is set to experience a 21.2% compound annual growth rate of their infrastructure stocks from 2024 to 2030, according to one report by Grand View Research.
Scott Petty, CTO at Vodafone, said the Oracle-AWS partnership “compliments our own strength and breadth of capabilities and will allow us to develop and deliver secure, resilient, and innovative services faster and at scale.”
The recent performance at Oracle exhibits sharp growth, especially in cloud services. The company announced that net income leaped 21% in its fiscal first quarter to more than $2.9 billion, while revenue grew 7% to $13.3 billion, beating expectations set by analysts. Cloud services and license support accounted for almost 79% of the total revenue, surging over 10% to $10.5 billion.
As cloud services became Oracle’s largest business, both our operating income and earnings per share growth accelerated,” said CEO Safra Catz of Oracle. She further appeared confident of the continued growth in revenue through the year and predicted a 7-9% rise during the current quarter.
Oracle stocks have further expanded its cloud presence across the world while opening its second cloud region in Saudi Arabia this week, part of a $1.5-billion investment in the country. Tightening its belt with strategic partnerships and global expansion in the cloud market, Oracle hopes it will find itself in a better position to accord businesses around the world with more advanced and flexible solutions to keep their infrastructure stocks at its peak.
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