Oracle Event Is Chance to Show $400 Billion Stock Rally Has Legs

Core Viewpoint - Oracle Corp. is set to reassure investors about its market rally and growth in cloud computing during the upcoming AI World conference, which has seen its stock rise 81% this year, adding approximately $400 billion in market value [1][2]. Group 1: Conference and Investor Sentiment - The AI World conference in Las Vegas will focus on Oracle's cloud computing business, which has been a significant driver of its stock performance [1]. - Concerns are rising that Oracle may be prioritizing growth over profitability, particularly in its cloud services for AI companies like OpenAI, leading to a decline in share prices [2][3]. - Investors are looking for clarity on Oracle's financial targets and margins, with expectations that the conference will address these issues [5]. Group 2: Financial Performance and Projections - Oracle's revenue growth is projected to increase by 17% in the current fiscal year, up from 8% the previous year, according to analyst estimates [5]. - Despite the revenue growth, Oracle's gross margin is expected to decline by over 2 percentage points to 68.4%, down from above 80% in fiscal 2021 [5]. - The company has forecasted a staggering 700% revenue increase in its cloud business over the next three fiscal years, raising questions about the sustainability of its growth strategy [2][3].