Oracle's Monster Rally Puts These ETFs in Focus

Core Insights - Oracle's stock surged approximately 36% on September 10, 2025, following the announcement of significant cloud demand numbers, marking its best day since 1992 [1] - The company reported $455 billion in remaining performance obligations (RPO), reflecting a 359% increase year-over-year [1][2] Financial Performance - Oracle's quarterly adjusted earnings were $1.47 per share, consistent with Zacks Consensus Estimate, compared to $1.39 per share a year prior [5] - The company reported revenues of $14.93 billion for the quarter, slightly missing the Zacks Consensus Estimate by 0.59%, compared to $13.31 billion in the previous year [5] Cloud Infrastructure Growth - Oracle anticipates a 77% increase in cloud infrastructure revenues for the fiscal year, projecting $18 billion, up from $10 billion last year [3] - By fiscal 2027, cloud infrastructure revenues are expected to reach $32 billion, with projections of $73 billion, $114 billion, and $144 billion in the following three years [3][4] - Overall, cloud infrastructure revenues are projected to increase by 1298% from 2025 to 2030, with most of this revenue already reflected in the reported RPO [4] AI Developments - During the quarter, Oracle announced the deployment of OpenAI GPT-5 across its database portfolio and SaaS applications [6] - The company expanded its partnership with Google Cloud to provide access to advanced AI models via OCI Generative AI service [6] Valuation Metrics - As of September 5, 2025, Oracle's stock had a forward P/E multiple of 29.88, lower than the Computer – Software industry average of 33.34 and the S&P 500's P/E of 22.1 [7] - Over the past five years, Oracle's stock has traded between a high of 35.93 and a low of 14.17, with a five-year median of 20.88 [8] - The stock has increased by 119.1% over the trailing 12-month period, including the significant gains on September 10, 2025 [8] Market Position and Future Outlook - Analysts from Bank of America noted Oracle's "exceptional backlog," positioning it as a key player in the AI infrastructure market [9] - There is an expectation of stock upgrades from analysts in the near future, despite concerns regarding profitability in the AI segment [9]