Oracle Soars Over 11% After Announcing Strategic Alliance with Amazon and Reporting Strong Results

Oracle’s strong performance in the first fiscal quarter, driven by its cloud infrastructure and increasing focus on artificial intelligence, exceeded market expectations, highlighting its ability to adapt to emerging technology trends.

Oracle (ORCL) shares surged on Monday night after the tech giant reported first-quarter earnings and revenue that surpassed forecasts. Additionally, Oracle announced a strategic partnership with Amazon Web Services, a cloud services rival of Amazon.com (AMZN).

On Tuesday, Oracle’s stock was up more than 9% in pre-market trading. Once the market opened, shares jumped nearly 13%, closing with an 11.4% gain. This move signaled a breakout beyond the flat base buy point of $146.59, identified by MarketSurge’s pattern recognition.

Oracle reported adjusted earnings of $1.39 per share on revenue of $13.3 billion for the August quarter. Analysts, on average, had projected adjusted earnings of $1.33 per share on revenue of $13.2 billion, according to FactSet. In the same period last year, Oracle reported adjusted earnings of $1.19 per share on revenue of $12.5 billion.

Before the earnings report, Oracle’s stock had already gained more than 30% year-to-date. The company’s strong performance has been fueled by the growth of its Oracle Cloud Infrastructure business, which has secured cloud computing contracts with AI-focused startups. This has allowed Oracle to outperform other software stocks that have faced challenges this year.

Oracle had signed similar deals with Microsoft (MSFT) and Google Cloud’s parent company, Alphabet (GOOGL), over the past 12 months, sparking market speculation that Amazon would be next.