Oracle (ORCL) Rallied Following a Big Cloud Services Contract

Core Insights - The SCCM Value Equity Strategy reported a gross return of 6.9% and a net return of 6.8% for Q3 2025, outperforming the Russell 1000 Value's 5.3% and the S&P 500's 8.1% during the same period [1] - Year-to-date, the strategy achieved a gross return of 13.0%, compared to the Russell 1000 Value's 11.7% and the S&P 500's 14.8% [1] Company Highlights - Oracle Corporation (NYSE:ORCL) experienced a one-month return of -19.13% but gained 15.59% over the last 52 weeks, closing at $220.49 per share with a market capitalization of $628.57 billion on November 18, 2025 [2] - Oracle's stock outperformed with a 28.9% increase following a $30 billion annual cloud services contract announcement, which is nearly three times the size of its current $10.3 billion cloud infrastructure business [3] - The anticipated revenue from the new contract is expected to begin in fiscal 2028, providing visibility into future growth and supporting Oracle's aggressive cloud strategy [3] Market Position - Oracle Corporation was held by 124 hedge fund portfolios at the end of Q2 2025, an increase from 97 in the previous quarter, indicating growing interest among institutional investors [4] - Despite Oracle's potential, the company is not listed among the 30 Most Popular Stocks Among Hedge Funds, with some analysts suggesting that certain AI stocks may offer greater upside potential and less downside risk [4]