Stock-Split Watch: Is Oracle Next?

Core Viewpoint - Stock splits have become more popular as companies aim to make shares more accessible to retail investors, although such moves do not change a company's fundamentals [1][2] Company Overview - Oracle has a history of stock splits, having executed a total of 10 since going public in March 1987, with the last split occurring in October 2000 [3][4] - The stock has underperformed compared to the Nasdaq-100 Technology Sector index over the past decade, which may prompt management to consider another split to boost demand [5] Growth Prospects - Oracle is experiencing significant growth due to increased demand for its cloud infrastructure driven by artificial intelligence (AI), with cloud infrastructure revenue rising 52% year-over-year in Q2 of fiscal 2025 [7][8] - The company reported a 24% increase in total cloud revenue to $5.9 billion, expecting to reach$25 billion in total cloud revenue by the end of the fiscal year [9][10] Market Potential - The cloud infrastructure-as-a-service (IaaS) market is projected to generate $580 billion in revenue by 2030, while cloud software-as-a-service (SaaS) is expected to reach$780 billion [10] - Oracle's remaining performance obligations (RPO) grew by 50% year-over-year to $97 billion, indicating strong future growth potential [11][12] Financial Projections - Oracle anticipates a 12$104 billion in fiscal 2029, nearly doubling fiscal 2024 levels [13] - Earnings are projected to rise over 20% through fiscal 2029, with potential earnings per share reaching $13.83, suggesting a future stock price of$373 based on current market multiples [14][15]