Since the beginning of the year, Oracle shares have grown by more than 40%, but the potential for further growth remains. The old-timer of the technology sector is experiencing a rebirth: in addition to maintaining a leading position in the field of databases, the company is actively developing areas related to backend infrastructure and SaaS.
Among the drivers, it is worth noting the new product Autonomous Database-a cloud database service that should significantly reduce the cost of operations for users. One more important point: as subscription revenue takes up an increasing share of Oracle's revenue, and management moves from California to cheaper Texas, the overall profitability of the business increases.
Oracle has an extensive product line that covers the needs of customers in terms of supply chains, finance, sales, HR and much more. About $46 billion of cash is on the balance sheet, which provides huge opportunities for development, including for purchases of firms in promising industries.
According to the results of the quarter ended in May, revenue increased by 8% y/y. The operating margin increased by 2.5 points, to 47%. Management is going to become a full-fledged cloud hub for its customers, through which all the services necessary for business will be provided. Salesforce, which regularly acquires firms from various industries, is trying to do something similar. However, Oracle says that they have an important advantage over such companies: their product line was created on their own basis, and does not consist of a large number of diverse applications from different developers.