Oracle Q3 Earnings: 5 Things To Know

March 10, 2023, 05:51 PM EST

Oracle continues to assert that its technology beats that of cloud’s big three of Amazon Web Services, Microsoft and Google Cloud.

Will Cloud Investment Hurt Margins?

Still, even if Oracle is surviving economic turbulence, KeyBanc noted that the capital expenditure demands for Oracle to continue ramping up its cloud abilities will squeeze its margins.

KeyBanc expects $2 billion to $2.5 billion a quarter in capital expenditures for Oracle through the first half of fiscal year 2024.

The amount of spending expected from Oracle factored into a Friday report from Societe Generale moving Oracle’s stock from buy to hold, according to Seeking Alpha.

The analyst said that Oracle efforts to scale the cloud business could cut into top-line growth.

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Wade Tyler Millward is an associate editor covering cloud computing and the channel partner programs of Microsoft, IBM, Red Hat, Oracle, Salesforce, Citrix and other cloud vendors. He can be reached at wmillward@thechannelcompany.com.