Why Are Shares of Oracle Soaring?

Core Insights - Oracle's stock has increased by 79% year-to-date, with a notable rise of 39% on September 10 following the announcement of its fiscal first-quarter results [2][4] - The company's quarterly revenue reached $14.9 billion, a 12% increase from the previous year, although it fell slightly short of Wall Street's expectations of $15 billion [4] - The significant driver of Oracle's stock surge was its backlog of business, which increased dramatically [4][5] Financial Performance - Earnings per share for the quarter were $1.47, reflecting a 6% year-over-year increase, but were a penny below expectations [4] - Oracle anticipates a 77% surge in revenue from its cloud infrastructure unit this year, projecting $18 billion [5] - The company's remaining performance obligations, which represent expected future revenue from signed contracts, surged to $455 billion, marking a 359% increase [5] Market Demand and Contracts - Oracle signed four multibillion-dollar contracts with three different customers during the latest quarter, indicating strong demand for its cloud infrastructure [5][6] - CEO Safra Katz expressed confidence in signing additional multibillion-dollar customers, highlighting the growing demand for Oracle's cloud services [6] Strategic Developments - Oracle plans to deliver an additional 37 data centers to major tech companies like Microsoft, Alphabet, and Amazon over the next few years, increasing the total to 71 [7] - The multicloud-based revenue from these tech giants soared over 1,500% in the quarter, showcasing the robust demand for Oracle's services [6] Leadership and Market Position - Oracle Chairman Larry Ellison's wealth increased by $90 billion to over $380 billion, positioning him just behind Elon Musk as one of the world's richest individuals [9] - The company's strong performance has made it a valuable stock for shareholders, reinforcing its competitive position in the market [10]