Core Viewpoint - Stock splits have become more common among major companies, making shares more accessible to a broader range of investors, particularly after significant price increases [1][2] Group 1: Stock Split Mechanics - A stock split increases the number of shares held by investors while lowering the price per share, maintaining the total value of their investment [4] - For example, in a 10-for-one stock split, one share valued at $1,000 would become 10 shares valued at $100 each post-split [4] Group 2: Oracle's Stock Performance - Oracle's stock is currently trading around $300, approximately $30 lower than its recent record high, which reflects a nearly 400% increase over the past five years [6] - The stock price is not at a psychological barrier level, such as $1,000, which often deters investors, making it comparable to other companies in the cloud sector [7] Group 3: Revenue Growth and Market Demand - Oracle's cloud infrastructure revenue surged 55% to $3.3 billion in the recent quarter, with projections of a 77% increase to $18 billion this year and a target of $144 billion over the next four years [8] - The demand for cloud capacity, particularly from AI customers, is expected to remain strong, as AI models require ongoing compute resources for inferencing [9] Group 4: Leadership Changes - Oracle has announced a leadership transition, with Safra Catz becoming executive vice chair and Clay Magouyrk and Mike Sicilia appointed as co-CEOs [10] Group 5: Future Stock Split Considerations - Despite Oracle's strong performance and potential for future growth, a stock split is not anticipated in the near term due to the current stock price and the company's focus on capitalizing on AI demand [11] - However, Oracle remains a candidate for a stock split in the future as its stock could rise significantly amid ongoing AI growth [12]
Stock Split Watch: Is Oracle Next?