3/12/2024

Oracle’s profit is higher than expected

Scroll down

ХОЧЕШЬ УЗНАТЬ КАК ЗАРАБАТЫВАТЬ НА НОВОСТЯХ?

Проходи бесплатную регистрацию и получи консультацию эксперта, доступ к обучающему курсу и вебинарам.

Key points:

  • Oracle beat forecasts for quarterly profit.
  • The S&P 500 and Nasdaq indexes fell slightly.
  • Shares of chip companies extended their recent declines.

Oracle on Monday announced a joint announcement with chip leader Nvidia and also beat quarterly profit forecasts, driven by strong demand for generative artificial intelligence.

At the same time, the S&P 500 and Nasdaq indices showed moderate declines as investors await the release of consumer and industrial price data later this week. Traders hope these indicators will provide a more accurate picture of the possibility of the Federal Reserve cutting interest rates in the coming months.

The Dow Jones Industrial Average rose 46.97 points, or 0.12%, to 38,769.66. The S&P 500 index fell 5.75 points (0.11%) to 5,117.94. The Nasdaq Composite fell 65.84 points (0.41%) to 16,019.27.

Stocks were mostly down

There is a continuation of the downward trend for shares of companies involved in the production of chips. Thus, Nvidia shares showed a decrease of 2%, Advanced Micro Devices – by 4.3%, and Broadcom – by 1.2%.

Boeing shares also fell 3%. US Transportation Secretary Pete Buttigieg on Monday said he expects the aircraft manufacturer to cooperate with the Justice Department and the National Transportation Safety Board in investigations into the Alaska Airlines Boeing 737 MAX 9 incident.

Oracle beats quarterly profit forecast from AI demand

Oracle shares posted a strong rally in response to the Nvidia announcement, rising 14% in extended trading.

Excluding one-time items, the company’s third-quarter earnings were $1.41 per share, which was 16% higher than LSEG’s estimates of $1.38 per share. Oracle’s late-day rally boosted the company’s market capitalization by more than $40 billion.

The 46-year-old database giant is taking steps to transform its business model, positioning itself as a cloud computing provider that offers services at more competitive prices than giants such as Amazon.

ХОЧЕШЬ УЗНАТЬ КАК ЗАРАБАТЫВАТЬ НА НОВОСТЯХ?

Проходи бесплатную регистрацию и получи консультацию эксперта, доступ к обучающему курсу и вебинарам.

Заполните форму и получите бесплатную консультацию!

Add review

Name *

Review *

Recommend to read