Anthony Chan, former chief economist at JPMorgan Chase & Co., argues that U.S. consumers will “survive” a widely predicted recession.
Oracle shares are trading sharply lower on Tuesday after the company reported mixed quarterly results.
The stock fell 13% intraday before recovering some losses, its worst daily pace since March 2002, according to the Dow Jones Market Data Group.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| ORCL | Oracle Corporation | 111.00 | -15.71 | -12.40% |
The technology giant on Monday reported first-quarter fiscal 2024 revenue of $12.45 billion, slightly below analysts’ expectations of $12.47 billion, and its outlook for the second quarter was weaker than expected.
Generative AI will bring trillions of dollars to the global economy: McKinsey
Additionally, the stock was perfectly priced, up 64% over the past 12 months.
Still, some investors think the sell-off has gone too far.
“There’s something missing on Wall Street,” Rosecliff founder and managing partner Mark Murphy said in an interview on FOX Business’ “Varney & Company.” “Please focus on the cloud business, which is a growth area,” he added.
Oracle announces AI enhancements
Larry Ellison, Oracle’s chief technology officer, said: (Reuters/Robert Galbraith/Reuters Photo)
In response to Murphy’s point, Oracle’s chief technology officer, Larry Ellison, spoke of new customers expected to generate billions of dollars in revenue.
“Generative AI is going to change everything. As of today, AI development companies have signed agreements to purchase more than $4 billion in AI training capacity on Oracle’s Generation 2 cloud. It’s double the AI training I had booked at the end,” he said.
Ellison added that the company’s Cerner Health business will win two contracts worth $1 billion, in addition to a major deal with Warren Buffett.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BRK.B | Berkshire Hathaway Co., Ltd. | 365.52 | +2.37 | +0.65% |
“We are now able to announce that all nine Berkshire Hathaway-owned utility companies are in the process of replacing all of their existing ERP systems and standardizing on Oracle’s Fusion Cloud Applications,” Ellison said. .
He also noted that Oracle plans to expand its partnership with Microsoft Azure Cloud Services. Details are expected to be announced later this week.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| MSFT | Microsoft Corporation | 333.65 | -4.29 | -1.27% |
Oracle CEO Safra Catz also hinted at future growth in response to a question about cloud momentum during the company’s earnings call.
“Our level of demand is amazing. The only word I can use is amazing. And we can’t get too excited just because we have to keep building systems and so on. is not desirable. So, yes, the momentum towards the cloud is very strong,” she said.
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