Congressman Gains From Oracle Stock As Company Moves Into AI
Oracle Corp (ORCL:US) is an American company offering global products and services for enterprise information technology, providing cloud-based industry solutions, application licenses, and license support services.
Rep. Thomas Kean Jr. purchased up to 150 shares of ORCL on Dec 14, 2023. Listed as being a subholding of Kean Family Partnership, the trade was valued between $1,001 and $15,000.
On January 29, Oracle Corp stock closed at $113.75, in what would be its second consecutive day of losses. Despite heading downwards, the tech stock still holds a solid history behind it having climbed price charts by 30.22% in the past year. Since after Kean's purchase, ORCL shares have surged by almost 13.40%.
Much of the debate around Oracle can be estimated due to the company foraging into AI. In the company’s Fiscal Q2 2024 earnings report, the company CEO Safra Catz said, “Demand for our Cloud Infrastructure and Generative AI services is increasing at an astronomical rate”. While much of the earnings fell below expectations, Oracle did land a 25% rise in Cloud revenues in the quarter.
In early January, Oracle officially introduced its Oracle Cloud Infrastructure Generative AI (OCI GenAI) service. Designed for enterprise use, the program specifically targets applications with large language models. Oracle anticipates continued rapid growth in cloud infrastructure revenue, potentially doubling every two years, becoming a substantial growth driver for the company. In addition, the GPU's cluster technology has attracted leading AI start-ups like Adept AI, Cohere, and Elon Musk's xAI.
Other Congress members who stocked up on ORCL in 2023 included Representatives Ro Khanna, Greg Stanton, Michael Guest, and Josh Gottheimer. Gottheimer, Khanna, and Stanton also sold ORCL not too long after purchasing stakes.
