Oracle’s $230 Billion Market Cap Surge to Lift It Above JPMorgan

Core Viewpoint - Oracle Corp. is poised to become the 10th most valuable member of the S&P 500, surpassing companies like JPMorgan Chase & Co., following a strong forecast for its cloud business that led to a significant increase in its stock price [1][2]. Group 1: Market Capitalization and Stock Performance - If Oracle's stock maintains a 40% gain, its market capitalization could rise by over $230 billion, reaching approximately $916 billion [2]. - This would represent Oracle's largest single-session market value addition ever, exceeding the market capitalizations of Intuit Inc. and Booking Holdings Inc. [3]. - The company's shares have increased by 45% this year, contributing about $212 billion to its market value [6]. Group 2: Cloud Business Outlook - Oracle provided an aggressive outlook for its cloud business, which has been bolstered by lucrative deals that increased its remaining performance obligations (RPO) [3]. - RPO surged 359% to $455 billion, significantly exceeding expectations and reinforcing confidence in Oracle's growth narrative [4]. - However, some analysts expressed skepticism regarding the feasibility of Oracle's guidance, particularly in light of capacity constraints and the capital required for expansion [5]. Group 3: Market Sentiment - The market appears to be optimistic about Oracle's prospects, with fund managers noting a strong willingness to invest in themes like AI, despite concerns about the realism of the company's guidance [6].