Bears who bet against heavily indebted Oracle (ORCL) will need to rethink their position. The database giant will edge higher by around 4% today after posting first-quarter results.
Oracle earned $1.92 in non-GAAP EPS. Revenue increased by 29.7% Y/Y to $19.35 billion. Bookings, or remaining performance obligations, increased by $209 billion Y/Y to $664 billion. The firm is forecasting Q2/2027 revenue growth of between 30%-34%.
Oracle is unlikely to revisit its $345.72 high, but at around $153, the stock looks attractive.
Adobe Systems (ADBE) will add to Thursday’s 2.4% decline this morning. The market continues to price in AI competition in image and video generation. In Q3, it earned $6.13 in non-GAAP EPS. Revenue rose by 12.9% Y/Y to $6.76 billion.
ADBE stock is inexpensive. It trades at a low P/E multiple of 12X with stock-based compensation included and 10X without that.
Copart (CPRT) will rally by nearly 10%. The firm posted GAAP EPS of $0.35 on revenue of $1.15 billion. Investors liked Copart’s agreement to acquire ACV Auctions (ACVA) for $10.50 a share in cash. ACVA stock rose by nearly 45% in after-hours trading.
Copart is an efficient operator in the industry. Adding ACV will enhance shareholder returns in the coming quarters. Looking ahead, the firm should expand its profits in the wholesale and non-salvage markets.
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