Seize Oracle’s and Netflix’s potential
The S&P 500 has reached new all-time highs, and with it, several of its components are also achieving record highs. Among these stocks, two tech giants stand out: Oracle and Netflix. Although they belong to different sectors, both have demonstrated solid growth and present great potential for investors looking for opportunities in this boom time.
Netflix: The resurgence of streaming
Netflix, the undisputed leader in global streaming, has rebounded strongly after a period of uncertainty. Despite criticism for its price increases and competition in the industry, the platform has achieved significant growth in the last year. With a 105% increase in its share price over the past 12 months, Netflix has reached a new all-time high, driven by its ability to generate revenue from new sources such as advertising and shared accounts.
Relative to total revenue Netflix accumulated 9.526B and June Ebitda has shown a corrective +0.29% (6.42B) recovery due to the firm's strategy changes, but is forecast to grow +4.1% in its third quarter. Netflix shares have gained 142% since the “Magnificent Seven” became the standard for tech investing in January 2023, with the stock perched in zone of its all-time high. The correction initiated by the password crackdown begun last year has helped the company accelerate its growth and to 17% in June 2024. Analyst consensus expects Netflix to report earnings per share of $5.11 and revenue of $9.764 billion. Comparing last year's $3.73 per share and revenue of $8.54 billion.
Oracle: Driven by Artificial Intelligence
On the other hand, Oracle has successfully reinvented itself thanks to the growing trend of Artificial Intelligence (AI). The company has gained ground in the cloud computing market, a sector that still has huge growth potential. Oracle's AI services are driving demand for cloud solutions, reflected in a 66% increase in its shares this year. Analysts estimate that it still has room to rise further, with upside up to 12%. Oracle accumulated total revenues of 13.307B and Ebitda of -$14.43 for the second quarter of the year. During the third quarter, the company achieved revenues of 13.28B, surpassing the 12.398B achieved in the same period of the previous year. Net earnings were USD 2,401 million, compared to USD 1,896 million last year. Basic earnings per share from continuing operations were USD 0.87, compared with USD 0.70 a year earlier, while diluted earnings per share were USD 0.85, compared with USD 0.68 a year earlier.
For the first nine months of the year, Oracle reported revenue of USD 38.674 billion, up from USD 36.118 billion a year earlier. Net earnings were USD 7,323 million, compared with USD 5,184 million for the same period in 2023. Basic earnings per share from continuing operations were USD 2.67, up from USD 1.93 a year ago, and diluted earnings per share were USD 2.60, up from USD 1.88 last year.
Conclusion
With the S&P 500 at record highs, both Netflix and Oracle present attractive opportunities for investors. While Netflix is consolidating its position as a streaming leader, Oracle is positioning itself as a key player in AI and the cloud. Both stocks are options to consider to maximize portfolio returns in the current market environment.
Ion Jauregui –ActivTrades Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Netflix: The resurgence of streaming
Netflix, the undisputed leader in global streaming, has rebounded strongly after a period of uncertainty. Despite criticism for its price increases and competition in the industry, the platform has achieved significant growth in the last year. With a 105% increase in its share price over the past 12 months, Netflix has reached a new all-time high, driven by its ability to generate revenue from new sources such as advertising and shared accounts.
Relative to total revenue Netflix accumulated 9.526B and June Ebitda has shown a corrective +0.29% (6.42B) recovery due to the firm's strategy changes, but is forecast to grow +4.1% in its third quarter. Netflix shares have gained 142% since the “Magnificent Seven” became the standard for tech investing in January 2023, with the stock perched in zone of its all-time high. The correction initiated by the password crackdown begun last year has helped the company accelerate its growth and to 17% in June 2024. Analyst consensus expects Netflix to report earnings per share of $5.11 and revenue of $9.764 billion. Comparing last year's $3.73 per share and revenue of $8.54 billion.
Oracle: Driven by Artificial Intelligence
On the other hand, Oracle has successfully reinvented itself thanks to the growing trend of Artificial Intelligence (AI). The company has gained ground in the cloud computing market, a sector that still has huge growth potential. Oracle's AI services are driving demand for cloud solutions, reflected in a 66% increase in its shares this year. Analysts estimate that it still has room to rise further, with upside up to 12%. Oracle accumulated total revenues of 13.307B and Ebitda of -$14.43 for the second quarter of the year. During the third quarter, the company achieved revenues of 13.28B, surpassing the 12.398B achieved in the same period of the previous year. Net earnings were USD 2,401 million, compared to USD 1,896 million last year. Basic earnings per share from continuing operations were USD 0.87, compared with USD 0.70 a year earlier, while diluted earnings per share were USD 0.85, compared with USD 0.68 a year earlier.
For the first nine months of the year, Oracle reported revenue of USD 38.674 billion, up from USD 36.118 billion a year earlier. Net earnings were USD 7,323 million, compared with USD 5,184 million for the same period in 2023. Basic earnings per share from continuing operations were USD 2.67, up from USD 1.93 a year ago, and diluted earnings per share were USD 2.60, up from USD 1.88 last year.
Conclusion
With the S&P 500 at record highs, both Netflix and Oracle present attractive opportunities for investors. While Netflix is consolidating its position as a streaming leader, Oracle is positioning itself as a key player in AI and the cloud. Both stocks are options to consider to maximize portfolio returns in the current market environment.
Ion Jauregui –ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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