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Oracle CEO highlights strong demand for cloud business despite plummeting stock price


Sep 19, 2023

During an interview with CNBC’s Jim Cramer, Oracle CEO Safra Catz provided further details about the company’s cloud business, highlighting that they are securing multibillion-dollar deals. Catz mentioned that in just the first week of the current quarter, Oracle booked an additional $5 billion solely from AI workloads. She emphasized that their systems are so cutting-edge that they continue to outperform competitors from other companies.

However, Oracle’s stock price took a hit with a steep decline of 12% – the largest drop since 2002 – following the company’s first-quarter earnings report and a weaker-than-expected outlook for the second quarter. In an effort to address this setback, Oracle recently disclosed plans to utilize Microsoft’s cloud division, Azure, to house its database hardware in data centers. Catz clarified that they are implementing newer and more efficient software in their data centers compared to their competitors. She further explained that time is of the essence in the cloud industry, where delays result in increased costs. Oracle’s focus on optimizing their own computers allows for faster operations.

Catz also touched upon Oracle’s acquisition of Cerner. She expressed optimism about the future profitability of electronic medical records software companies. However, she acknowledged that Cerner’s accelerated transition to the cloud is currently creating short-term challenges for revenue. Catz reiterated that Oracle’s intention was not to leave Cerner on its own, but rather to modernize the company using the necessary technology. She posed the question, “Where’s the big payoff?” emphasizing their commitment to making it happen.

By Editor

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