Zacks Investment Ideas feature highlights: Oracle, Microsoft and Amazon

For Immediate ReleaseChicago, IL – June 18, 2025– Today, Zacks Investment Ideas feature highlights Oracle ORCL, Microsoft MSFT and Amazon AMZN.Oracle Earnings Impress: Are Cloud Stocks a Buy?The big banks will really kick the Q2 earnings cycle into a higher gear in a few weeks, but the reality is that earnings season is never 'over'. We've heard from several companies over recent weeks, whose results we'll include as part of the broader Q2 tally.Among the group that have already reported, Oracle saw a notably strong reaction thanks to its robust results, with shares seeing a strong move higher post-earnings. Up nearly 30% YTD, shares are now outperforming the S&P 500 following the print.Let's take a closer look at the release and a few other major cloud players, such as Microsoft and Amazon.Oracle Earnings ImpressConcerning headline expectations in the release, sales of $15.9 billion and adjusted EPS of $1.70 both cleared our consensus expectations, reflecting growth rates of 11% and 4.3%, respectively.Notably, its remaining performance obligations (RPOs) were up a strong 41% year-over-year, a reflection of the red-hot demand the company has been witnessing.CEO Safra Catz said –"We expect our total cloud growth rate—applications plus infrastructure—will increase from 24% in FY25 to over 40% in FY26. Cloud Infrastructure growth rate is expected to increase from 50% in FY25 to over 70% in FY26. And RPO is likely to grow more than 100% in FY26. Oracle is well on its way to being not only the world's largest cloud application company — but also one of the world's largest cloud infrastructure companies."The red-hot demand is also showing up in analysts' current year sales expectations, which have moved considerably higher following the release. Sales expectations were already trending higher for some time, with the recent commentary cementing the strong outlook.MSFT Benefits from Cloud MomentumMicrosoft shares have been strong in 2025 so far, up 14% compared to the S&P 500's 2% gain. Concerning headline figures in its latest release, EPS of $3.46 and sales of $70.0 billion both handily exceeded our consensus expectations, up 13% and 18%, respectively.The technology titan's sales growth continues to be mighty impressive, a common theme among the broader Mag 7 group overall.Strength in Microsoft Cloud and AI drove the results, with Microsoft Cloud revenue up 20% year-over-year to $42.4 billion. Demand has remained strong for the tech titan, with the trend expected to continue over the coming years.Importantly, its Intelligent Cloud (includes Azure) revenue totaled a strong $26.8 billion, up 21% from the year-ago period.Amazon Inks New DealsAmazon's latest set of results also showed solid momentum within AWS, with sales of $29.3 billion in the segment up 17% year-over-year. The growth rates here have been a major focus, giving investors a gauge of whether sales have been decelerating or accelerating.Further, AMZN signed several new AWS deals with companies throughout the period, a list that includes Adobe, Uber, Nasdaq, Ericsson, Cisco, and more. Many businesses have clamored for AWS, and market participants should expect Amazon to ink many more deals in the coming months/years.Analysts have taken a bullish stance on AMZN's current fiscal year, with the current $6.17 Zacks Consensus EPS estimate up roughly 6% over the past year. The value reflects 12% growth YoY, continuing the titan's growth trajectory.Bottom LineOracle's recent set of quarterly results, which we count in our broader Q2 tally, were notably strong, enjoying strong growth thanks to snowballing demand. The growth within its remaining performance obligations (RPOs) helps confirm the strong demand.Other major cloud players, including Amazon and Microsoft also enjoyed very healthy demand concerning their services throughout their latest periods, further confirming the broader cloud momentum.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks