Oracle (ORCL) reported its third-quarter earnings, coming in-line revenue estimates while beating adjusted earnings per share (EPS) expectations. Harvest Portfolio Management Co-Chief Investment Officer Paul Meeks, joins Yahoo Finance Live to discuss Oracle's performance.
Meeks describes the earnings report as "incrementally positive" for the stock, acknowledging that following their previous quarterly earnings, estimates were revised downward significantly. Despite beating EPS estimates, Meeks says that "it was a very low bar" to surpass, implying that the achievement was not particularly impressive. While Oracle's investments and capabilities in artificial intelligence (AI) may drive some growth, Meeks believes the company's legacy business will "continue to dampen the overall growth rate," limiting its upside potential.
Regarding the AI play, Meeks suggests that it "tilts in favor of hardware and semiconductor" stocks, as AI necessitates an "infrastructure build" for large language models. However, he expresses caution about the potential for AI applications from software companies to become significant revenue generators, advising investors to "stick with the infrastructure".
Yahoo Finance's Julie Hyman and Brian Sozzi break down the results.
#yahoofinance #Oracle #ai

About Yahoo Finance:

Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.

- Get the latest news and data at finance.yahoo.com

- Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)

- Follow Yahoo Finance on social:

X:   / yahoofinance  
Instagram: https://www.instagram.com/yahoofinanc...
TikTok: https://www.tiktok.com/@yahoofinance?...
Facebook:   / yahoofinance  
LinkedIn:   / yahoo-finance