Today is Tuesday, June 14, 2022.
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Oracle’s “Hyper-Growth Phase”
Shares of Oracle (NYSE: ORCL) jumped 14.96% in after-hours trading on Monday after the computer technology company posted positive financial earnings.
Financials: Oracle posted earnings of $1.54 per share and revenue of $11.8 billion; both were better than expected.
The Good: In addition to the 5% increase in total revenue, cloud revenue grew 19%. NetSuite cloud revenue went up 27% and Infrastructure cloud revenue went up 36%.
In The Clouds: The results show that these cloud applications drove revenue in the quarter. Oracle cited strong demand for its cloud business.
Quote: “We believe that this revenue growth spike indicates that our infrastructure business has now entered a hyper-growth phase.” - Safra Catz, Oracle CEO.
The Bad: Operating margins dropped from 49% to 47% year-over-year. There were also some currency headwinds.
Numbers: Oracle’s stock hit its lowest point in the past 12 months on Monday. The stock is down 22% in the past year.
Final Thoughts: Oracle’s successful quarter is a big win for tech companies, especially with other software stocks suffering as of late. These results also show that Oracle can compete with all of the cloud software upstarts in the market.
Notable Earnings Today: Core & Main (NYSE: CNM), Tuya (NYSE: TUYA), Li-Cycle Holdings (NYSE: LICY), Ironnet (NYSE: IRNT), Ferguson (LON: FERG), Sprinklr (NYSE: CXM), Algoma Steel Group (Nasdaq: ASTL), Planet Labs (NYSE: PL), ReNew Power (Nasdaq: RNWWW), RF Industries (Nasdaq: RFIL), Kaspien Holdings (Nasdaq: KSPN).
Notable IPOs Today: Heart Test Laboratories, Inc. (Nasdaq: HSCS), 374Water Inc. Common Stock (Nasdaq: SCWO).
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: OPEC Monthly Report (7:00 a.m. ET), PPI (8:30 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).
Cryptocurrency’s Mid-June Crash, Explained
Most cryptocurrencies had their biggest collapse in over a year on Monday.
Numbers: On Monday, Bitcoin, Ethereum, and Dogecoin fell over 15%. Cardano and Solano dropped over 6%.
Catalysts: Crypto markets were spooked. There were macro factors, such as inflation, at play. Late Sunday, crypto lending network Celsius abruptly paused all withdrawals. Binance also temporarily paused Bitcoin withdrawals on Monday morning.
Final Thoughts: In addition to the crypto plunge, most stocks also dropped Monday. It was a bad day for most investments.
Housing Stocks: Disadvantages in 2022
What are the top reasons to avoid housing stocks in 2022?
Mortgages: While historically low, the recent escalation of mortgage rates is bad for the industry. Rates are still surging.
Home Values: Simply put, home values are still very high. Do you really think that these higher values will continue?
Numbers: The PHLX Housing Index is down 18% in the past year.
Final Thoughts: Housing stocks are down this year. On the bright side, some investors may try to buy the dip.
Trends to Watch
Bear With Me: S&P 500 Falls Into Bear Market (The New York Times)
Fighting Inflation: Fed Likely to Consider 0.75-Percentage-Point Rate Rise This Week (The Wall Street Journal)
Good Chance: Morgan Stanley CEO James Gorman sees 50-50 odds of recession ahead (CNBC)
Elon Won’t Be Happy: Tesla could take a big loss on its Bitcoin bets (Seeking Alpha)
World Class: Vincent Makes Investing in Alternative Assets More Accessible by Introducing VALT (Crowdfund Insider)
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