Oracle - 30% cloud revenue growth, but cerner concerns stall growth

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Oracle's share price dropped by the largest amount earlier this week since 2002, dropping 12% which compares against the 15% drop the stock experienced as the entire tech sector exploded in the bursting of the dot com bubble.

Article originally published by Forbes. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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15 Sep 2023

While the overall tech sector is up in 2023 and certain stocks are experiencing outsized gains accelerated by the tailwinds of AI, technology bellwethers such as Oracle are getting caught in the crossfire as less nuanced commentators are making knee jerk assessments which market participants are reacting to.

Oracle said total revenue rose 9% to $12.45 billion, which essentially matched estimates at $12.47 billion. The context here is that Oracle missed consensus estimates by $20m which equates to one enterprise deal that slipped out of the quarter, by what could have been hours. The market commentary is rightly a miss, but a more nuanced and considered viewpoint needs to emerge.

Contained within that 9% topline growth was a 30% increase in cloud revenue to $4.6 billion, which included 66% growth in cloud infrastructure to $1.5