by Oracle (ORCL)
Shares in Oracle rose more than 8% in premarket trading after the software company announced cloud deals with Google (GOOG) and OpenAi.
“In Q4 alone, Oracle signed more than 30 AI sales contracts worth more than $12.5bn (£9.8bn), including one with OpenAi to train ChatGPT in Oracle Cloud,” the CEO said Safra Catz.
The company also said it would bring its database to Google’s cloud, with availability coming in November. Organizations will be able to deploy workloads in Google and Oracle cloud data center regions without being subject to data transfer fees.
“In Q3 and Q4, Oracle signed the largest sales contracts in our history, driven by overwhelming demand to train large AI language models in Oracle Cloud,” said Catz.
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Despite this, fourth quarter results at Larry Ellison’s company fell short of Wall Street’s expectations.
Total revenue increased 3% to $14.29bn. Net income came in at $3.14bn, or $1.11 per share, down from $3.32bn or $1.19 per share in the year-ago quarter.
In the most recent quarter, the company raised $10.23bn in revenue from cloud services and license support, up 9% from the previous year.
Oracle reported total revenue growth of 6% for fiscal 2024. For FY25, analysts expect 9% growth.
The company expects first-quarter revenue to grow between 5% and 7%, while analysts expect a 7.6% rise.
Apple shares hit a new high during Tuesday’s session, closing 7% higher but were in the red during pre-market trading as the AI announcements continue to some analysts.
In its developer conference around the world, the iPhone maker got back on the AI race when Apple Intelligence was announced. He added that users will soon be able to take advantage of OpenAi’s ChatGPT while using Siri.
At least 13 analysts raised their price targets on Apple shares after the developer’s departure, saying the latest features could boost sales as the company prepares to announce a new line of iPhones in the fall.
“This was a historic day for Apple and Cook & Co, and it did not disappoint in our view,” Wedbush analyst Daniel Ives told investors in a research note.
Ives, who maintained his outperform rating and $275 price target, said “the entire technology landscape has been laser-focused on the much-anticipated AI strategy and further updates across the hardware and software ecosystems which will drive the next cycle of growth in the coming years.”
“Apple is demonstrating that it is invested in developing its platform and devices to enable the next era of computing, interfaces and experiences,” said Gartner analyst Tuong Nguyen.
Elon Musk has threatened to ban Apple devices from his companies due to what he claims are security concerns.
Paramount (PARA)
Shares in the company have crashed and continued to plunge deeper into the red during pre-market hours after the media tycoon behind Paramount Pictures pulled the plug on a proposed multibillion-dollar merger, following months of negotiations.
Shari Redstone has ended talks with Skydance Media about a merger that would have transferred control of Paramount from her family to billionaire David Ellison.
Skydance offered about $2bn to acquire Redstone National Entertainment (NAI) and would later merge Paramount with Ellison’s company through a stock deal.
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Skydance was also prepared to buy about half of Paramount’s fellow shareholders for $15 a share and inject about $1.5bn to help pay off the company’s debts.
A statement from National Amusements indicated that the two sides “were unable to reach mutually acceptable terms” for the deal.
Paramount has struggled in a changing media landscape, particularly with the demise of its traditional cable business.
Legal & General (LGEN.L)
Shares in the insurance, retirement and investment services group fell after CEO António Simões announced a move to provide “simpler and better connected L&G”.
The changes include the creation of a single asset management division that will bring together Legal & General Investment Management and the wider group’s own investment unit, as well as looking to sell certain assets, notably its housebuilder Cala.
The group’s powerhouse institutional pension insurance business, which buys old pension schemes, and its main insurance retail arm, which has 14m customers, will remain.
However, the company plans to aggressively pursue corporate pension markets, targeting up to £65bn in the UK by 2028, after completing £13.7bn worldwide last year.
The company said it intends to return more to shareholders over 2024 to 2027, with dividend growth of 5% in 2024 and 2% growth per year thereafter, as well as share buybacks £ 200m.
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