00:04 Speaker A
Shares of Oracle, they’re rising again. This coming amid continuing talks between the US and China about Tik Tok and increasing investor appetite from the AI boom.
00:13 Speaker A
We’re navigating how to play the sector with the Yahoo Finance playbook and joining me now we’ve got CT Panigrahi, managing director at Mizuho America’s CT, it is good to see you. So, I do want to start uh CT with with Oracle which is moving higher in today’s trade.
00:27 Speaker A
President Trump hints at a TikTok deal. A buyer has not been named CT, but as you know, Oracle has been mentioned as a, you know, as a possible contender. Interesting to get your thoughts there, CT, as a financial analyst who covers the name.
00:46 CT Panigrahi
Yeah. Uh thanks for having me here. Look, uh TikTok is one of the, I would say the major customer and uh Oracle cloud infrastructure. Uh it has been, you know, you know, in a news for some time.
01:00 CT Panigrahi
how is that going to play out if there’s a ban on TikTok, if somebody buys it. Look, at this point, Oracle is kind of, you know, they they they are hosting TikTok at this point. Any news would certainly impact but so far, the way, you know, news coming out right now, we don’t see any kind of uh, you know, major issue at this point.
01:21 CT Panigrahi
until we see them losing uh TikTok as a customer.
01:27 Speaker A
I’m I’m just curious CT, how much of a of a topic of conversation is it though? I mean when you’re talking with your clients about Oracle, do they how often do they bring this up?
01:38 CT Panigrahi
Uh not this year anymore. You know, last year, yes, it was in the news. Uh mostly remember towards the, you know, November, December time frame last year. There’s a lot of discussion on TikTok. This time this this year, I won’t say, you know, I haven’t heard uh much discussion about TikTok.
01:57 Speaker A
So CT, you look at this stock, it’s in the green today. It’s up around 80% this year. You argue though, the risk reward here, still attractive?
02:09 CT Panigrahi
Yes, look uh Oracle is now in a sec second phase of growth, I would say. You know, remember if you go back to the last decade, you know, 2010 to 2020, you know, their top line 10 years CAGR was like 4%.
02:22 CT Panigrahi
But now if you look at from 2020 to 2030 with our forecast, it’s going to be 20% plus.
02:33 CT Panigrahi
Now, Oracle has now become a growth story at this point. and what’s fueling that is the AI. You know, Oracle is now a structural winner. You know, now you’re seeing mostly all the AI companies using Oracle as infrastructure, but the next phase
02:49 CT Panigrahi
for Oracle is when enterprises start adopting AI. You know, Oracle has end-to-end stack, you know, for starting from applications
02:57 CT Panigrahi
where data get ingested to the database, the market leading database, and then you have AI infrastructure and then agent platform. So you have the end-to-end stack for enterprises.
03:10 CT Panigrahi
So, there is definitely a lot of opportunity for Oracle next few years.
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