Oracle Shares Surge on Strong Cloud Growth Forecast

So, Oracle just dropped some big news—like, really big. Their cloud business? It’s expected to grow over 70% next year. Yeah, you heard that right. In a world where everything from AI to your favorite apps runs on the cloud, this isn’t just some random prediction. It’s a statement. But here’s the thing: is this growth for real, or just another overhyped promise? Let’s break it down.

Oracle’s Cloud Business: The Underdog Story

Okay, remember when Oracle was just that boring database company? Well, they’ve been playing catch-up in the cloud game against giants like AWS and Microsoft. But lately? They’ve been making moves. Like, Nvidia-level moves. They’re not the biggest, but they’re carving out a space—especially with hybrid cloud solutions and a focus on security. Think of them as the scrappy underdog that might just pull off an upset.

That 70% Growth Number: What’s Behind It?

When Oracle’s CEO says 70%, she’s not just throwing out a random percentage. Here’s why this might actually happen:

• Hybrid Cloud is Hot: Companies want flexibility—run some stuff on their own servers, some in the cloud. Oracle’s “cloud@customer” thing? Perfect for that.
• AI is Exploding: Their Nvidia partnership is a big deal. AI workloads need serious power, and Oracle’s got the hardware.
• They’re Going Global: New data centers in places like Chile and Serbia? That’s smart. Less competition, more opportunity.

Just for context, they grew 54% last quarter. So 70%? Ambitious, but not impossible.

How the Market Reacted

Predictably, the stock jumped—like, 5% in a day. Analysts started upgrading their ratings left and right. Compare that to Microsoft’s Azure growth (27% last quarter), and suddenly Oracle looks interesting. But let’s be real: AWS still owns a third of the market. Oracle’s at 2%. The gap’s huge, but the momentum? That’s the story here.

Why This Matters

This isn’t just about Oracle. It’s about the whole cloud industry shifting. Companies are ditching old-school software for cloud-native stuff, and Oracle’s betting big on vertical integration—databases, apps, everything. If they pull this off, we might be talking about the “Big Four” instead of the “Big Three.”

But… It’s Not All Smooth Sailing

Here’s the catch:

• AWS and Microsoft Won’t Back Down: They’ve got deep pockets and loyal customers. Price cuts? Innovation wars? Yeah, that’s coming.
• Scaling is Hard: Ask Google how easy it is to keep up with demand. Oracle’s got to execute perfectly.
• Regulations Are a Pain: Different countries, different rules. That global expansion? Could hit some snags.

Should You Invest?

Optimists say: “70% growth in a half-trillion-dollar market? Yes, please.” Plus, Oracle’s stock is cheaper than Microsoft’s relative to earnings.
Skeptics say: “Remember when IBM tried this?” Execution is everything, and Oracle’s had its share of misses.

What to do: Watch the next earnings call. If they actually hit that 70%, things could get interesting. But maybe don’t go all-in just yet.

Final Thoughts

Oracle’s either about to pull off something huge or crash and burn. For investors, it’s high-risk, high-reward. My take? Keep an eye on it. The cloud race is far from over, and Oracle just made things a lot more exciting.

Next steps: Check their Q4 earnings, see if customers are actually adopting OCI, and maybe—just maybe—dip a toe in. The cloud’s not just the future; it’s already here.

Source: Financial Times – Companies