There were some surprises when CNBC released a list of stocks which continued to create a stir after the gong of the closing bell had been sounded on Wednesday, but one that topped them all was mention of Oracle Corporation (NYSE:ORCL). As a result of earnings report of the tech wizard being better than Wall Street’s projection, value of shares showed a rise of 2.6% and closed at $42.22 per share.
When asked to analyze the situation on CNBC, Daniel Ives, an analyst with FBR Capital Markets pointed out that it was after three consecutive quarters of disappointing results that such optimism had surfaced and hence signaled good things to come during the days ahead. In his opinion, the big question that hung in the air was whether Oracle Corporation (NYSE:ORCL) will be able to sustain this positive swing and for how long. Presently, things are indeed looking good and in keeping with the holiday spirit with cloud services in the pipeline.
Cloud computing being granted maximum attention, the two CEOs’ had the following comments to offer –
Safra Catz – “We continue to deliver industry-leading operating margins and cash flow even after adding the thousands of specialized sales people and engineers necessary to accelerate the growth of our new cloud businesses.”
Mark Hurd – “Total Q2 new cloud bookings grew at a rate of more than 140%. We now have over 600 ERP Fusion Cloud customers — that’s five-times more ERP customers than Workday.”
In retrospection, much of this improvement has been attributed to the change at the helm which took place in September, 2014. After 37 years of having steered Oracle Corporation (NYSE:ORCL) to where it is today, Larry Ellison stepped down from the post of CEO and handed over the mantle to the combined team of Safra Catz-Mark Hurd. Henceforth, Mr. Ellison will be focusing on the engineering department in terms of hardware and software issues while the two new CEOs’ carry the responsibility of rendering Oracle’s products more compatible.
Currently poised at $41.16, shares of Oracle Corporation (NYSE:ORCL) have benefited largely from the financial forecast which the earnings report has projected.
This article has been written by Vinita Basu.