Oracle is the world-leading database management software company. It plays a central role in the IT industry as well. Most of the software was initially installed on-premises. However, in the past few years, they have converted to cloud-based services as well. They now offer on-demand subscription plans. It should be noted that Oracle has also acquired a long list of companies to expand this ecosystem with enterprise resource planning (ERP) services. Hence, before investing, you must check thoroughly about the oracle share price that is $112.47 for the time being. In this blog, we will dive into the reasons to invest in oracle shares.
In addition, the technology sector has had a rich history since its establishment. Hence, investing in its shares is worth it. Let us go into the details of why to invest in Oracle shares step by step.
Financial performance
If we talk about the financial performance of Oracle shares, it might look a bit mixed at first glance, but the reality is shown once the information is thoroughly researched. Statistics say that the total net revenue generated was $12.45 billion, for a gain of 8.7%, which fell short of the consensus estimate. A notable thing that every investor must keep in mind is that Oracle's success lies in its cloud segment, with total cloud revenue surging by 30% to $4.6 billion. These trusted figures speak about the effectiveness of its demands in the market. Thus, in the fast-paced and competitive world of investing, it is truly a competitive player in the market. Hence, it is one of the solid reasons to invest in Oracle shares.
The bright future of Oracle
If we keep in mind the market outlook for Oracle, it does offer a promising future. According to the analysts, there seems to be a substantial increase in Oracle's revenue and GAAP EPS (including Cerner) by 18% and 63%, respectively, for the full year. Apart from this remarkable growth potential, it also offers a good forward dividend yield of about 1.8%. This dividend yield adds a level of appeal to investors, providing a potential source of income in addition to the expected capital gain.
Strengthened Free Cash Flow
The way this company strategically manages its finances using strategies like cost control, leverage, and a favourable product mix to enhance its operating cash flow, free cash flow, and overall earnings Notably, while the top-line growth was 8.7%, the operating income saw an even more robust increase of 13%.
While they offer promising results, however, it should be your duty to thoroughly research the potential risks that come with investing in the shares. Staying updated on the market trends can lead you to success. If you consider all these factors, you can make a wise decision and have a better experience when it comes to investing.
Wrapping up
To sum up, whether it is oracle, adobe share price (currently at $577.74), it is crucial to stay updated regarding the share price trends so that you can make a wise decision. Therefore, as you embark on your journey in the world of investing or trading, 5paisa could be your lifesaver with their years of experience and expertise.