Oracle Corporation (ORCL) Rose on Growth in Cloud Infrastructure Business

Parnassus Investments, an investment management company, released the “Parnassus Value Equity Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the Fund (Investor Shares) returned 7.28% (net of fees) underperforming the Russell 1000 Value Index’s 9.43% return. The Information Technology sector was the largest detractor, due to both stock selection and an overweight position. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Parnassus Value Equity Fund highlighted stocks like Oracle Corporation (NYSE:ORCL), in the third quarter 2024 investor letter. Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments. The one-month return of Oracle Corporation (NYSE:ORCL) was 9.35%, and its shares gained 61.16% of their value over the last 52 weeks. On December 16, 2024, Oracle Corporation (NYSE:ORCL) stock closed at $171.23 per share with a market capitalization of $478.92 billion.

Parnassus Value Equity Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q3 2024 investor letter:

“Oracle Corporation (NYSE:ORCL) announced second-quarter results that exceeded consensus expectations, driven by growth in its cloud infrastructure business, which is benefiting from demand for AI applications. Investor sentiment was further bolstered by the company’s announcement of a new partnership with Amazon.”

A team of IT professionals meticulously crafting a large-scale enterprise performance management system.

Oracle Corporation (NYSE:ORCL) ranks 27th in our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 91 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the third quarter which was 93 in the previous quarter. Oracle Corporation (NYSE:ORCL) reported a $14.1 billion in revenues in the fiscal second quarter of 2025, up 9% from last year. While we acknowledge the potential of Oracle Corporation (NYSE:ORCL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Oracle Corporation (NYSE:ORCL) and shared billionaire David Tepper’s top stock picks heading into 2025. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.