1 Growth Stock That Could Join Alphabet, Microsoft, and Amazon in the Trillion Club

Oracle released their latest quarterly numbers Monday after the market closed the stock went up 11.44% on Tuesday now year to dat the stock is up close to 50% year-over year the stock is up 25% now has a market cap of close to 430 billion has a forward PE of 24.2 times and as you can see here from the analyst estimates growth sales growth at least is expected to accelerate in the coming two fiscal years and the same for EPS eps is growing actually a little bit faster than sales growth now could Oracle be a$1 trillion company meaning more than doubling its market cap today could very well be if they continue like this if the growth rates continue to be double digit now currently the average analyst price Target sits just 3.4% higher than the price were at today yes this is even with all the new price targets that happened after the earnings report right now if you look at forward PE EV to Abida price to sales price to free cash flow price earnings to growth yes it's true it is more expensive than its 5year mean but as you will see in just a bit the company is in a different phase right now it's in a growth phase something that we haven't seen from Oracle before so before seeing that the mean the 5year mean here Ford PE sits at 16.6 times makes sense makes sense that today we're a bit more expensive because we're also growing faster and so before jumping into the report and a couple of things that were mentioned by management plus some extra things that I added if you enjoy this type of videos leave it a thumbs up subscribe if you have not I know the last time I talked about Oracle not that many viewed the video hopefully this time it will be different anyways leave your thought down in the comment section below and if you want to support me even further do check out the link down in the description and in comment get the top 10 best stocks to buy now or go to f.com investor thank you very much now I first want to start off with two other companies AWS and well AWS Amazon AWS and Google Cloud both of those are quite something of course AWS is already huge and is growing now 18.17% you can see here a re acceleration the last quarters same for Google cloud of course a bit smaller I mean it's at$ 10.34 billion for the quarter last quarter growing 28% so if they're keeping this space I mean this is going to be a money-making machine for them now why why am I saying this well of course when you want to grow these types of things capex is going to be increasing as well here we've seen Amazon's capex increase earlier and much faster than Google of course we've also seen huge Investments during the pandemic supply chain improvements warehouses stuff like that so it's not all AWS but more recently we have seen re acceleration and that is for AWS Ai infrastructures and stuff like that we've seen that as well with Google which is also one of the reasons why free cash flow has not been growing as much as before all right now that we've got that out of the way I can talk about the other stuff switching to Oracle of course there are two big segments here one the infrastructure cloud services one and the other one application cloud services and license support revenue and as you can see previously previously these things were growing low single digits right then of course we've got some huge acceleration for Oracle application cloud services and license and of course also big acceleration in growth for the infrastructure cloud services now growing double digits 133% 14% or so and so for the quarter Gap earnings per share was up 20% to $13 total revenue was $1 13.3 billion of 7% year over-year but here's the thing total remaining performance obligations or RPO is up 53% to $99 billion Cloud Revenue that's infrastructure as a service plus SAS $5.6 billion that was up 21% year-over-year Cloud infrastructure Revenue was $2.2 billion and that was up 45% year over year Cloud application that's SAS $3.5 billion of 10% year of a year Fusion Cloud Erp up 16% year over year and net Suite up 20% year over year now as you've seen RPO is up 53% this strong contract backlog will increase Revenue growth throughout fiscal year 2025 Oracle has 162 cloud data centers in operation and under construction around the world the largest of these data centers is 800 megaw and will contain Acres of Nvidia GPU clust for training large scale AI models and in q1 42 additional Cloud GPU contracts were signed for a total of $3 billion and so switching to what was mentioned during the earning SC a couple of things here one we regards to Data Centers and AI training so Oracle is building giant data centers with high performance RDMA networks and large Nvidia GPU clusters to power its AI training capabilities these data centers can be over 1 gaw in size Oracle has made its latest EXA data and EXA scale RDMA database technology available on other Cloud platforms like Microsoft Azure Google cloud and AWS this will enable customers to use the Oracle database anywhere which Alison believes will turbocharge the growth of their Data Center business for years to come and Oracle unlike the other Cloud players they are basically focused well fully focused I would say on Nations and Enterprises no small players so their let's say nishish thing is to be highly highly secured and of the highest quality Larry Ellison also discussed how Oracle is using Ai and automation excessively across its products and services from Healthcare applications to security features like biometric authorization and zero trust networking he emphasizes that automation is key for improving security and reliability you also mentioned that the race to build powerful AI models is ongoing and will require massive Investments of over 100 billion dollars from the few companies and Nations that can compete there is no expected slowdown or shift away from the need for AI training which we've talked about before when talking about Nvidia especially after the stock dipped I said well I said I repeated what analysts were saying that well actually it wasn't analyst I think it was Eric Schmidt um ex Google I think he said that over the next couple of years these companies these huge huge companies are going to spend $300 billion or so and since Nvidia has the big big market share most of that money will go towards Nvidia now the big question that was asked and finally answered on an earning call is how are they going to start monetizing this AI thing right because everybody's investing in AI aii but who's actually monetizing it so here here's an answer finally he says the fact that we can dramatically expand our health business is because it's based on ai ai is just I don't know how to describe it I mean the best way to describe it it's not something you sell separately it's the diagnostic system it's the electronic health record system the Pharma system the prescription system the user authentication the login system it's all Ai and I know people think it's a separate thing that oh my God and I hear a bunch of applications come and say oh we've got some AI agents we'll charge separately I mean our applications are going to be primarily AI applications everything how do you charge separately for everything he doesn't understand he finds it bewildering when he listens to the other folks talk about that I don't understand what they're saying we wonder and he'll stop right there basically basically he says AI for us is basically what we're offering all of our offerings everything has to do already with with AI it's not an extra thing that they're going to add on top or the left or the right or the center he then talks about something very very specific here well specific specialized models maybe I should say that with regards to these Frontier models there are going to be a lot of very specialized models I can tell you things that I'm personally involved in this is not me speaking it's of course Larry Ellison which are using computers to look at biopsies of slides or CT scans to discover cancer but we have seen a report saying that one of these models can detect cancer five years before well it even appears so that's uh that's quite something also there are blood tests for discovering cancer those tend to be very specialized models those are not necessarily the foundational models that you've seen in Gro chpt llamas and the Geminis they tend to be highly specialized models trained on image recognition on certain data literally millions of biopsy slides for example and not much other training data is helpful I think Elon spoke about that as well when the report about Tesla potentially paring up with XI using their resources training etc etc Tesla vehicles well their system they're basically training on video Imaging very very specific things it's not very helpful when it has to also have all the extra data right that xai has no has to be very very specific for autonomous driving and that's about it so yes we're going to see a ton of specialized models and I think it's going to blow our minds I know right now we're all exposed to chat GPT Gemini perplexity and stuff like that to be honest sometimes those things are quite dumb still yes still so yes I continue to use Google search Sumi moving on to one of the last things here and to be honest the way he said it during the earning score reminds me a lot of how Elon Musk speaks no wonder that they are good friends so he says here let me say something that's going to sound really bizarre well I probably you'd probably say well he says bizarre things all the time so why is he announcing this one it must be really bizarre so we're in the middle of designed data center that's nor of a gwatt but we found the location and the power place we look at it they've already got building permits for three nuclear reactors these are the small modular nuclear reactors to power the data center these are crazy it's getting this is what's going on so yeah if you think we are in the seventh inning as you say in the United States I think you might be wrong I think we are still in the maybe second inning I would say last thing here the major overview beats and misses mostly beats two misses here Revenue Hardware missed by 5.22% and services Revenue missed by 5.4% all the rest were Beats and so was Q2 guidance and so right now what do we have here well we have a stock at all-time highs we also have RSI that is overbought so yeah that's Oracle for you right now a lot of positive momentum for this business extremely well-run business great Management stock stock has run up quite a lot of course this is not the first time we've seen stocks being overbought and staying overbought for quite a long time so we'll see see what happens the 20day moving average sits at $125 the 50-day one at 136 and the 20-day one at $138 yes August 5th the stock was at $125 or so so overall to conclude another great quarter by Oracle like I said in the last video for Oracle is it too late to buy the stock it wasn't clearly it wasn't because the momentum is still with them and did it change right now no we've seen RPO right RPO is up what 53% year over year close to hundred billion dollars I mean it's right there in front of us even if you're an Nvidia shareholder this was a positive quarter for Oracle positive commentary for NVIDIA and all the other folks out there as well so yeah could Oracle in the future be worth a trillion dollars I think so if they continue like this I think by 2030 I think it could be a trillion doll maybe even earlier but yes I do think Oracle in the future if they continue like this could be worth a trillion doll save this video if you want maybe I'm completely nuts I personally don't own the stock but I I very much like the way they operate and I'll continue to follow this company that's all I've got for you right now do share your thoughts down in the comment section below like subscribe to all of that and I see you all in the next one bye-bye 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