2023-06-13 22:17:18
The share price of the giant American software and cloud computing services company Oracle rose during trading yesterday, Tuesday, to a new record high, following the company announced that it expects continued growth in demand for cloud computing services during the next fiscal year.
The company stated that sales of the cloud computing sector during the last quarter of the last fiscal year increased by 54% to reach $4.4 billion, following rising by 45% annually during the third quarter of the year.
Revenue rose 17 percent year-on-year in the three months to the end of May, to $13.8 billion, the company announced Monday, following the US stock market closed. The company also benefited from the growing buzz around AI applications in its bottom line.
Oracle earned $3.3 billion, up 4 percent from last year.
The quarterly numbers exceeded market expectations. The share price rose more than 4% at times in following-hours trading.
Bloomberg news agency stated that Oracle’s share price increased by 6.5% to $123.99, while the share price increased by 42% since the beginning of this year, compared to a 32% increase in the iShares index of technology-traded investment funds.
“We see stocks maintaining their positive momentum, with continued growth in demand for cloud computing services driven in part by continued strong demand for AI services,” said Ramio Lincho, an analyst at Barclays Bank.
Oracle, headquartered in Austin, Texas, said revenues from cloud computing infrastructure increased by 76% to $1.4 billion during the fourth quarter of the fiscal year ending May 31. Cloud computing application sales jumped 45% to $3 billion.
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