Oracle expects cloud business to boom

On late Thursday, Oracle Corporation forecasts its heavy cloud investments to pay off as it sets a higher fourth-quarter outlook.

It anticipates its Q4 adjusted profit between $1.40 and $1.44 per share. The strong guidance came in higher than the analysts’ consensus of $1.38.

In addition, it expects revenue to grow between 6.00% to 8.00% on a constant currency basis.

Then, the legacy software firm said it is on track to spend $4.00 billion in capital expenditure this year.

Accordingly, it mentioned building more data centers and improving cloud services that trail giants like Microsoft, Amazon, and Google.

In line with this, experts said that Oracle’s plan to elevate investment in its cloud business was the right move.

They explained that the upbeat forecast is enough to convince investors that the firm has room to grow.

In the third quarter, the company emphasized that operating expenses significantly climbed as it invested aggressively to meet customer demand.

Subsequently, cloud services and license support costs alone climbed 23.00% during the quarter. Then, the total operating expenses edged up 8.00% at $6.69 billion.

Excluding items, it obtained $1.13 per share for the quarter ended February 28. The result is lower than the market average estimate of $1.18.

Net income declined 54.00% to $2.32 billion in the stated case.

Oracle Chief Executive Officer Safra Catz noted the firm’s earnings per share and net income declined after two heavy investments.

He stated that the tumbling share price of gene-sequencing company Oxford Nanopore hurt the profit.

At the same time, it cited an operating loss at Arm server chip maker Ampere Computing, a private firm.

Nevertheless, Oracle remained confident that the said investments would deliver robust returns for the business in the near term.

TikTok approaches data-storage deal with Oracle

Chinese social media giant TikTok is close to completing its deal with Oracle to store data for US users.

The agreement addresses American regulatory concerns over integrity on the famous short video application.

The US national security panel previously ordered ByteDance to divest TikTok. This directive came amid the fears of transferring American users’ data to China’s communist government.

Eventually, the cloud computing heavyweight will store all of TikTok’s US user data on Oracle data servers.

At present, their information is in the data centers in Virginia, with a backup in Singapore.

Moreover, the Chinese firm also explores partnerships with other technology companies over firewalls and cyber security measures.

Notably, TikTok is one of the world’s leading social media platforms, with more than 1.00 billion active users globally.