Oracle (ORCL) targets fiscal 2027 revenue growth of 20% driven by cloud and AI expansions. (00:24) Tesla (TSLA) had its worst day since 2020 after deliveries expectations were slashed. (02:02) CoreWeave signs $11.9B 5-year deal with OpenAI (MSFT) to provide infrastructure. (03:06)Episode transcripts seekingalpha.com/wsb.Show links: Biggest stock movers Tuesday: DAL, TSLA, and moreSA analysts mixed on when stocks will rebound following sell-offAlphabet CIO touts small nuclear reactors, NextEra chief sees opportunity for colocationSolar accounts for 84% of new electricity sources added to U.S. grid in 2024, but policy uncertainty loomsSign up for our daily newsletter here and for full access to analyst ratings, stock quant scores, dividend grades, subscribe to Seeking Alpha Premium at seekingalpha.com/subscriptions.
Chapter 1: What are the key highlights from Oracle's recent performance report?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Tuesday, March 11th. I'm Julie Morgan. Oracle sales backlog increases, but Wall Street is not convinced. A brutal sell-off for Tesla and CoreWeave signs a deal with OpenAI.
Oracle is down nearly 1.5% in pre-market action after its fiscal third quarter results missed expectations slightly but topped $100 billion in remaining performance obligations. For the period ending February 28th, Oracle said it earned an adjusted $1.47 per share as revenue rose 6.4% year-over-year to $14.13 billion.
Analysts expected the company to earn an adjusted $1.49 per share on $14.39 billion in revenue. Total remaining performance obligation soared 63 percent during the period to $130 billion as the company signed $48 billion worth of deals in the quarter. Oracle's CEO said the company has signed cloud agreements with several leading technology companies including OpenAI, XAI, Meta, NVIDIA, and AMD.
The statement went on to say that Oracle expects that their huge $130 billion sales backlog will help drive a 15% increase in Oracle's overall revenue in their next fiscal year beginning this June.
Chapter 2: How is Oracle's sales backlog expected to influence future growth?
Chapter 3: What are the implications of Oracle's new cloud agreements?
Analysts expected the company to earn an adjusted $1.49 per share on $14.39 billion in revenue. Total remaining performance obligation soared 63 percent during the period to $130 billion as the company signed $48 billion worth of deals in the quarter. Oracle's CEO said the company has signed cloud agreements with several leading technology companies including OpenAI, XAI, Meta, NVIDIA, and AMD.
The statement went on to say that Oracle expects that their huge $130 billion sales backlog will help drive a 15% increase in Oracle's overall revenue in their next fiscal year beginning this June.
He also said that they expect RPO to continue to grow rapidly as they look forward to signing their first Stargate contract, yet another big opportunity for Oracle to expand both its AI training and AI inferencing businesses in the near future. Oracle also declared a cash dividend of 50 cents per share, up 20% from its previous payment.
The dividend is payable on April 23rd to shareholders of record as of April 10th. Tesla fell 15% in Monday trading as investors start to prepare for what could be a disappointing Q1 deliveries report in a few weeks. The decline stood as the largest since September 2020 when Tesla was not added to the S&P 500 index as anticipated.
Chapter 4: Why did Tesla experience a significant stock decline?
A steady stream of reports from Europe and China are being seen as an indication that the electric vehicle maker may miss the initial forecast for Q1 deliveries of close to 415,000. On Wall Street, UBS formalized those concerns on Monday by slashing its Q1 deliveries estimate to 367,000. For reference, Tesla disclosed 495,570 deliveries for Q4 of 2024,
Chapter 5: What factors contributed to the lowered Tesla delivery forecasts?
and delivered 462,890 vehicles in Q3 of 2024. Notably, the current consensus estimate for Tesla deliveries in 2025 of over 2 million units could be in jeopardy if upcoming deliveries reports show signs of weakness. CoreWeave signed a five-year contract to deliver AI infrastructure with OpenAI. The contract value for this strategic deal is up to $11.9 billion.
This agreement is part of the NVIDIA-backed AI startup CoreWeave's preparations for its highly anticipated initial public offering, which is expected to be one of the major tech listings of 2025. As part of the deal, OpenAI, which is backed by Microsoft, will acquire a stake in CoreWeave by purchasing $350 million worth of shares through a private placement during CoreWeave's IPO.
This strategic partnership aims to enhance OpenAI's computing capacity for training and deploying advanced AI models, while also diversifying OpenAI's infrastructure dependencies beyond its primary partner, Microsoft. We've made it to that time of the morning when we take a look at what's trending on Seeking Alpha at this early hour.
Seeking Alpha analysts are mixed on when stocks will rebound following the sell-off. Alphabet CIO touts small nuclear reactors and NextEra chief sees opportunity for co-location. And solar accounts for 84% of new electricity sources added to the U.S. grid in 2024. But policy uncertainty looms.
On our Catalyst Watch for the Day, notable investor events include Eaton Corporation's Investor Day, Global Ease Investor Day, Silicon Laboratory's Analyst Day, and Teradyne's Analyst Day. Albertsons will replace Aspen Technology in the S&P Midcap 400 Index. J.M. Smucker will participate in a fireside chat at the Bank of America Consumer and Retail Conference.
And Camping World will also participate in a fireside chat at that same conference. Now for a look at the markets today ahead of the opening bell. Dow S&P and Nasdaq futures are in the green. Bitcoin is down 1.25% at $81,000. In the world markets, the FTSE 100 is down 0.2% and the DAX is up 0.5%. Asana is on our list of the biggest movers of the day pre-market. ASAN is down 28%.
Shares plummeted after the company reported its most recent results and announced a CEO transition. On today's economic calendar, at 10 a.m., the job openings and labor turnover survey, and at 1 p.m., three-year note auctions. That's it for today's Wall Street Breakfast. Thanks for listening. For a full offering of news, analysis, ratings and data on stocks and ETFs, become a premium subscriber.
Learn more at seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.
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