Coffee With Greta: Oracle Drags


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DJIA Futures: -38 (-0.1%)

SPX Futures: -11 (-0.2%)

NASDAQ Futures: -47 (-0.3%)

Good morning friends!

Futures are falling as high oil prices pressure the market and Oracle drags on tech.

Let’s get right to it!

Oracle Tumbles

Oracle (ORCL) shares are dropping 9.5% ahead of the open after fiscal Q1 revenue missed expectations. 

Here’s how the database software maker’s results compared to analysts’ estimates: 

  • Adjusted EPS: $1.19 vs $1.15 expected
  • Revenue: $12.45 billion vs $12.47 billion expected

Overall revenue grew 9% year over year.

Oracle’s cloud services and license support segment saw revenue jump 13% from a year ago to $9.55 billion vs $9.44 billion expected. 

But the cloud license and on-premises license segment revenue dropped 10% to $809 million vs $892.7 million expected. 

Hardware revenue fell 6% year over year to $714 million vs $739.6 million expected. 

And cloud infrastructure revenue totaled $1.5 billion, up 66% from a year ago but slowing from the 76% growth in fiscal Q4.

Oracle’s forecast was also weak.

The company expects fiscal Q2 adjusted EPS of $1.30 to $1.34 and 5% to 7% revenue growth. 

Analysts were calling for adjusted EPS of $1.33 and 8% revenue growth. 

Oil Prices Jump

Higher oil prices are putting pressure on the market this morning. 

West Texas Intermediate crude futures are up 1.5% to over $88.50 bbl while Brent crude futures are up 1.1% to over $91.60 bbl. 

Brent prices topped $90 last week for the first time in 10 months after Saudi Arabia and Russia extended production cuts until the end of the year. 

Now investors are awaiting new data on U.S. crude stockpiles later today.

A preliminary Reuters poll showed expectations for U.S. inventories to fall by about 2 million barrels. 

The International Energy Agency and OPEC will also release monthly reports later this week.

Apple Rises Ahead Of iPhone Event

Apple (AAPL) shares are up 0.4% in premarket trade ahead of the company’s iPhone launch event later today. 

The event is set to begin at 1:00 p.m. ET at its headquarters in Cupertino, California. 

Apple is expected to unveil four new iPhone 15 models at this event. 

Like the iPhone 14, the new phones are expected to include two sizes of the iPhone 15 and two sizes of the iPhone 15 Pro.

The biggest change expected at this year’s event is Apple switching to a USB-C charging port on its phones from the Lightning port on older phones.

That change is required by new regulations in Europe.

Other announcements at the event are expected to include a new Apple Watch and iOS 17.

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