Factors Affecting Oracle Stock in 2018

So far in this series, we’ve discussed market expectations from Oracle’s (ORCL) soon-to-be-announced fiscal 3Q18 results, the recent acquisition of Zenedge, and its performance in the cloud space.

Although Oracle isn’t featured in the top five players list in the cloud space, its leadership in database and enterprise applications gives its offerings a distinct edge over peers.

If Oracle’s cloud offerings, quarterly earnings, and guidance exceed analysts’ expectations in fiscal 3Q18, its stock could see improvement going forward.

Lower tax rates could boost profit margins for the tech sector, especially for companies with significant overseas cash reserves. Apple, Microsoft (MSFT), GE, Oracle, and Google (GOOG) are the top five S&P 500 companies with the largest amount of cash overseas, as the chart above shows.

Technologies like AI (artificial intelligence), ML (machine learning), Internet of Things (IoT), and the cloud are expected to be growth drivers for tech companies such as Oracle.

Oracle stock has risen more than 19.0% in the past year. During the same period, the S&P 500 Index (SPY) (SPX) has risen 15.0%. In 2018 to date, Oracle stock has risen 7.2% compared to the ~1.8% rise in the S&P 500 Index.