Jim Cramer’s Top 12 Must-Watch Stocks

2. Oracle Corporation (NASDAQ:ORCL)

Number of Hedge Fund Investors: 93

Jim Cramer expressed his frustration over Oracle Corporation (NASDAQ:ORCL)’s plans to potentially add another 1,000 to 2,000 data centers on top of its existing 162. He raised concerns about the environmental impact of such expansion, noting that data centers currently consume about 4% of the world’s energy.

“What drives me crazy is that Oracle has 162 data centers and is considering adding another 1,000 or 2,000. What does that do to the planet? If you think about it, data centers use about 4% of all energy today, and if that doubles to 8%, we need to control the 30% that’s wasted.”

Oracle Corporation (NASDAQ:ORCL) has seen substantial expansion in its cloud business, especially with its Autonomous Database and Oracle Cloud Infrastructure (OCI), allowing it to meet the rising demand for cloud solutions due to digital transformation across various industries. In its recent Q1 FY2024 earnings report, Oracle Corporation (NASDAQ:ORCL) reported revenues of $12.5 billion, a 17% increase from the previous year, with cloud services and license support revenues up by 23%.

Key partnerships, like the one with Microsoft, improve its cloud interoperability, while the acquisition of Cerner enhances Oracle Corporation (NASDAQ:ORCL) presence in healthcare. Oracle Corporation (NASDAQ:ORCL)’s investments in AI applications and data analytics also boost its appeal to businesses looking to adopt advanced technologies. Additionally, Oracle Corporation (NASDAQ:ORCL)’s focus on returning capital to shareholders through dividends and buybacks makes it attractive for investors seeking both growth and income.

Carillon Eagle Growth & Income Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q2 2024 investor letter:

“Oracle Corporation (NYSE:ORCL) stock rose to all-time highs after the company announced better than expected cloud infrastructure revenue. Oracle signed dozens of new customers, including two leaders in generative artificial intelligence. The backlog remains, and strong growth appears poised to accelerate.