Many of today’s big tech trends have one thing in common. They require massive amounts of data to process. It doesn’t matter if it’s for autonomous vehicles, or state-of-the-art AI software, or simply storing data such as photos and videos.
If anything, these big tech trends suggest that data needs will accelerate. Companies that can organize, sort, store, and quickly recall data will continue to benefit from this trend. And that means increasing profits for investors.
One of the most important components of data is its storage and management. That’s where database giant
Oracle (ORCL) comes into play.
Oracle has been shifting towards more cloud services in recent years, and increased its recurring revenues from services.
That also points to the company continuing to trend higher and deliver better returns for investors as profit margins, already at 20 percent, increase.
And with Oracle shares trading at 18 times forward earnings, the stock looks much cheaper than many other major tech companies today.
Action to take: Shares of Oracle are a buy now, with an eye towards adding to that position on any significant drop in shares. At current prices, investors can also get a 1.4 percent dividend.
For traders, the July $120 calls, last trading for about $7.15, could see mid-to-high double-digit returns on a further rally in shares in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.