Oracle (NYSE: ORCL) stock price has been under pressure over the last couple of months. The selloff is driven by investors’ concerns over sluggish revenue growth. Oracle stock price is down 6% in the last three months.
Its shares are currently trading around $55, down from a 52-weeks high of $60 a share that it had hit three months ago. Oracle stock price is up significantly from a 52-weeks low of $42.
Aggressive Cloud Push Couldn’t Impact Oracle Stock Price
The company is aggressively working on strategies to enhance the revenue base. The management believes they have the potential to generate growth from the cloud. It announced to hire close to 2,000 additional workers amid its strategy of expanding footprints in cloud computing services.
The company plans to open 20 more cloud locations by the end of this year.
The market analysts claim that Microsoft (NASDAQ: MSFT) and Amazon.com (NASDAQ: AMZN) has generated substantial growth from the cloud. However, they believe there’s plenty of business to compete for in the cloud market.
Sluggish Financial Growth Adds to Selloff
Oracle revenue of $9.22 billion in the first quarter soared only 0.21% compared to the past year quarter.
Its cloud services and license support revenue of $6.81B slightly increased from the consensus estimate for $6.77B. However, hardware revenue of $815M declined 10% year over year, down from a consensus of $837.9M. Its operating income grew 4% year over year in the first quarter.
“Our cloud ERP businesses, including both Fusion ERP and NetSuite ERP, grew 33% in Q1,” said Oracle CEO, Mark Hurd. “We now have over 6,500 Fusion ERP customers and over 18,000 NetSuite ERP customers.”
Oracle stock price needs support from financial numbers in the coming days. The company is seeking to expand its footprints in cloud markets to enhance revenue growth. On the negative side, the company is likely to experience sluggish revenue growth in the short-term. This is because it needs some time to capture market share from big tech players.