After the closing bell yesterday, Oracle (ORCL – Free Report) reported lackluster first-quarter fiscal 2024 outcomes. The software program large offered downbeat steerage, citing sturdy competitors within the cloud-computing trade and a digital spending pullback. Nevertheless, it beat earnings estimates.
Shares of Oracle declined as a lot 10% in pre-market buying and selling right now and are on observe to shed about $30 billion in market worth. This has put ETFs with the best allocation to this software program large in focus. These embrace iShares Expanded Tech-Software program Sector ETF (IGV), Qraft AI-Enhanced U.S. Massive Cap Momentum ETF (AMOM – Free Report) , Constancy Cloud Computing ETF (FCLD – Free Report) , iShares U.S. Tech Independence Centered ETF (IETC – Free Report) , and First Belief NASDAQ Know-how Dividend Index Fund (TDIV – Free Report) .
Oracle Earnings in Focus
Earnings per share got here in at 95 cents, outpacing the Zacks Consensus Estimate by 5 cents. Revenues rose 9% yr over yr to $12.45 billion, in step with estimates. The substantial income progress was powered by infrastructure and functions cloud companies that grew 64% and 17%, respectively (see: all the Technology ETFs here).
Cloud revenues jumped 30% to $4.6 billion within the fiscal first quarter. Revenues from the 2 strategic cloud functions companies, specifically Fusion and NetSuite Cloud ERP functions, grew 21% every in the course of the quarter. Oracle Fusion is the world’s largest cloud ERP enterprise, whereas Oracle NetSuite is the second-biggest cloud ERP enterprise.
For the continuing quarter, Oracle expects revenues to develop 5-7% and adjusted earnings per share within the vary of $1.30 to $1.34. The Zacks Consensus Estimate for revenues signifies progress of seven.6%. The consensus estimate for earnings per share stands at $1.32.
Analysts imagine that the rise within the adoption of synthetic intelligence (AI) functions might increase Oracle’s cloud infrastructure enterprise as a result of the advances made in its networking know-how are extra suited to tackle AI workloads.
ETFs in Focus
Let’s delve into every ETF under:
iShares Expanded Tech-Software program Sector ETF (IGV)
iShares Expanded Tech-Software program Sector ETF supplies publicity to software program corporations within the know-how and communication companies sectors by monitoring the S&P North American Expanded Know-how Software program Index. The fund holds a basket of 116 securities, with Oracle taking the second spot at 8.8% of the entire property (learn: Software Stocks & ETFs: The Next Big AI Opportunity?).
iShares Expanded Tech-Software program Sector ETF is fashionable with an AUM of $6.7 billion. Quantity is sweet because it exchanges 826,000 shares a day. IGV expenses 41 bps in annual charges and has a Zacks ETF Rank #1 (Robust Purchase) with a Excessive danger outlook.
Qraft AI-Enhanced U.S. Massive Cap Momentum ETF is an actively managed exchange-traded fund that seeks capital appreciation by investing in shares that exhibit greater value momentum. It holds 50 shares in its basket, with Oracle occupying the second spot at 7.5%. Shopper cyclicals is the highest sector with a 40% allocation, adopted by know-how, industrials and client non-cyclicals.
Qraft AI-Enhanced U.S. Massive Cap Momentum ETF has gathered $13.1 million in its asset base whereas buying and selling in a quantity of three,000 shares a day on common. It expenses 75 bps in annual charges.
Constancy Cloud Computing ETF follows the Constancy Cloud Computing Index, which displays the efficiency of a worldwide universe of corporations throughout the market capitalization spectrum that present services or products enabling the elevated adoption of cloud computing, characterised by the supply of computing companies over the web. It holds 59 shares in its basket with Oracle accounting for 4.8% share.
Constancy Cloud Computing ETF has managed property value $43.2 million and expenses 39 bps in charges per yr. It trades in a quantity of 18,000 shares a day on common.
iShares U.S. Tech Independence Centered ETF is an actively managed ETF offering publicity to U.S. corporations with a concentrate on the nation’s tech independence. It holds 163 shares in its basket, with Oracle occupying the seventh place at 4.6% of property.
iShares U.S. Tech Independence Centered ETF has gathered $158.4 million in its asset base and trades in a light-weight quantity of 12,000 shares. It expenses 18 bps in annual charges (learn: Time for Low-P/E Tech ETFs?).
First Belief NASDAQ Know-how Dividend Index Fund supplies publicity to dividend payers within the know-how sector by monitoring the Nasdaq Know-how Dividend Index. TDIV holds about 91 securities in its basket. Of those corporations, ORCL occupies the sixth place, making up 4.5% of the property.
First Belief NASDAQ Know-how Dividend Index Fund has $2 billion in its asset base and trades in a reasonable quantity of about 91,000 shares per day. The ETF expenses 50 bps in annual charges.
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