Better Than Planned

Image source: Shutterstock - Anagarcia

What's going on?

Oracle reported better-than-expected results late last week, and the software giant’s got businesses to thank.

What does this mean?

Companies around the world are increasingly turning to cloud computing solutions to help with day-to-day activities like accounting – and Oracle’s not complaining. The software giant makes two cloud-based resource planning products, among other things, and they’ve been in high demand: sales for its Fusion and NetSuite products were up 35% and 29% respectively last quarter compared to the same time last year. That’s partly why its total cloud sales – including selling software solutions and infrastructure like data centres – were up by 22% last quarter. And that helped grow overall sales by a better-than-expected 6% last quarter compared to the same time last year.

Why should I care?

For markets: Oracle’s got rivals to catch.
That’s nothing new, mind you: Oracle’s sales have now grown for six quarters in a row, which might explain why its shares were up 39% this year before the results – far higher than the US stock market’s 26%. But don’t get carried away: that’s still far behind cloud rivals Microsoft and Google’s parent company Alphabet – they’re up 53% and 71% respectively. This might help though: Oracle’s upped its share buyback program by $10 billion – which should reduce their supply and push up their price – and delighted investors sent its shares up 10% after the news (tweet this).

Zooming out:
The Oracle of Omaha strikes again.
There’s another Oracle at play: Brazilian fintech Nubank is backed by SoftBank and Warren Buffet – a.k.a. the Oracle of Omaha – and its shares jumped 15% when it listed on the US stock market late last week. Not only was it the fifth largest US listing this year, it also earned Nubank the title of Latin America’s most valuable financial company. And it’s not stopping there: the digital lender’s planning to use the $2.6 billion it raised to expand into new markets like Mexico and Colombia.

 

Originally posted as part of the Finimize daily email.

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