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Oracle (ORCL - Free Report) reported robust first-quarter fiscal 2025 results on Monday after the bell, outpacing earnings and revenue estimates. The growing demand for artificial intelligence is driving growth in its cloud computing sector. Oracle shares spiked as much as 15% to a record in yesterday's trading session.
Investors seeking to tap the strength should consider ETFs having the largest exposure to this software giant. These include Pacer Data and Digital Revolution ETF (TRFK - Free Report) , iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , First Trust Innovation Leaders ETF (ILDR) , Fidelity Cloud Computing ETF (FCLD - Free Report) and First Trust Expanded Technology ETF (XPND) .
Oracle Earnings in Focus
The company’s earnings per share were $1.39, beating the Zacks Consensus Estimate by 7 cents and increasing 16.1% from the year-ago earnings. Revenues rose 6.9% year over year to $13.3 billion and beat the Zacks Consensus Estimate by 0.68% (see: all the Technology ETFs here).
Oracle is seeking to expand its cloud services business, anchored by its Gen2 offering tied to partnerships with NVIDIA (NVDA), Google (GOOGL) and Microsoft (MSFT). It is also well positioned for solid growth from other key business lines, thanks in part to a surge in artificial intelligence investments.
Chief executive officer Safra Catz expects revenues to jump in double digits in the fiscal year ending in May. Cloud infrastructure revenues will grow quicker than in the prior fiscal year. Additionally, Catz said that demand for cloud infrastructure will continue to outpace supply in the second fiscal quarter. Oracle is rapidly constructing new data centers to keep up with the need for servers to power AI.
The company expects fiscal second-quarter revenue growth of 7-9% and earnings per share in the range of $1.42 to $1.46.
Pacer Data and Digital Revolution ETF aims to offer investors exposure to globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 78 stocks in its basket. Oracle takes the top spot, accounting for 11.4% of the assets.
Pacer Data and Digital Revolution ETF has accumulated $35.8 million in its asset base and charges 60 bps in annual fees. It trades in an average daily volume of 9,000 shares.
iShares Expanded Tech-Software Sector ETF provides exposure to software companies in the technology and communication services sectors by tracking the S&P North American Expanded Technology Software Index. It holds a basket of 114 securities, with Oracle taking the second spot at 9% of the total assets (read: 5 Technology ETFs at the Forefront of the August Rebound).
iShares Expanded Tech-Software Sector ETF is popular, with an AUM of $6.3 billion. Its volume is good as it exchanges 4 million shares a day. IGV charges 41 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
First Trust Innovation Leaders ETF is an actively managed ETF seeking to offer exposure to companies that may benefit from the development or application of scientific and technological innovation. It holds 62 stocks in its basket with Oracle occupying the second position at 6.9% share.
First Trust Innovation Leaders ETF has $38.7 million in its asset base and trades in a paltry volume of about 20,000 shares per day. The ETF charges 76 bps in annual fees.
Fidelity Cloud Computing ETF follows the Fidelity Cloud Computing Index, which reflects the performance of a global universe of companies across the market capitalization spectrum that provide products or services enabling the increased adoption of cloud computing, characterized by the delivery of computing services over the Internet. It holds 53 stocks in its basket, with Oracle being the top firm and accounting for a 5.3% share (read: Will Tech ETFs See Further Selloffs?).
Fidelity Cloud Computing ETF has managed assets worth $70 million and charges 39 bps in fees per year. It trades in a volume of 19,000 shares a day, on average.
First Trust Expanded Technology ETF is an actively managed ETF offering broad exposure to information technology companies or financial companies and communication services companies whose operations are principally derived from and/or dependent upon technology (such companies are collectively referred to herein as "Expanded Technology Companies"). It holds 50 securities in its basket with Oracle occupying the top position at 5.1%. XPND charges 65 bps in annual fees.
First Trust Expanded Technology ETF has managed assets worth $20.4 million in its asset base and trades in a daily volume of 3,000 shares on average.
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Oracle ETFs to Buy Post Robust Fiscal Q1 Earnings
Oracle (ORCL - Free Report) reported robust first-quarter fiscal 2025 results on Monday after the bell, outpacing earnings and revenue estimates. The growing demand for artificial intelligence is driving growth in its cloud computing sector. Oracle shares spiked as much as 15% to a record in yesterday's trading session.
Investors seeking to tap the strength should consider ETFs having the largest exposure to this software giant. These include Pacer Data and Digital Revolution ETF (TRFK - Free Report) , iShares Expanded Tech-Software Sector ETF (IGV - Free Report) , First Trust Innovation Leaders ETF (ILDR) , Fidelity Cloud Computing ETF (FCLD - Free Report) and First Trust Expanded Technology ETF (XPND) .
Oracle Earnings in Focus
The company’s earnings per share were $1.39, beating the Zacks Consensus Estimate by 7 cents and increasing 16.1% from the year-ago earnings. Revenues rose 6.9% year over year to $13.3 billion and beat the Zacks Consensus Estimate by 0.68% (see: all the Technology ETFs here).
Oracle is seeking to expand its cloud services business, anchored by its Gen2 offering tied to partnerships with NVIDIA (NVDA), Google (GOOGL) and Microsoft (MSFT). It is also well positioned for solid growth from other key business lines, thanks in part to a surge in artificial intelligence investments.
Chief executive officer Safra Catz expects revenues to jump in double digits in the fiscal year ending in May. Cloud infrastructure revenues will grow quicker than in the prior fiscal year. Additionally, Catz said that demand for cloud infrastructure will continue to outpace supply in the second fiscal quarter. Oracle is rapidly constructing new data centers to keep up with the need for servers to power AI.
The company expects fiscal second-quarter revenue growth of 7-9% and earnings per share in the range of $1.42 to $1.46.
ETFs in Focus
Let us delve into each ETF below:
Pacer Data and Digital Revolution ETF (TRFK - Free Report)
Pacer Data and Digital Revolution ETF aims to offer investors exposure to globally listed stocks and depositary receipts of data and digital revolution companies. It follows the Pacer Data Transmission and Communication Revolution Index, holding 78 stocks in its basket. Oracle takes the top spot, accounting for 11.4% of the assets.
Pacer Data and Digital Revolution ETF has accumulated $35.8 million in its asset base and charges 60 bps in annual fees. It trades in an average daily volume of 9,000 shares.
iShares Expanded Tech-Software Sector ETF (IGV - Free Report)
iShares Expanded Tech-Software Sector ETF provides exposure to software companies in the technology and communication services sectors by tracking the S&P North American Expanded Technology Software Index. It holds a basket of 114 securities, with Oracle taking the second spot at 9% of the total assets (read: 5 Technology ETFs at the Forefront of the August Rebound).
iShares Expanded Tech-Software Sector ETF is popular, with an AUM of $6.3 billion. Its volume is good as it exchanges 4 million shares a day. IGV charges 41 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
First Trust Innovation Leaders ETF (ILDR)
First Trust Innovation Leaders ETF is an actively managed ETF seeking to offer exposure to companies that may benefit from the development or application of scientific and technological innovation. It holds 62 stocks in its basket with Oracle occupying the second position at 6.9% share.
First Trust Innovation Leaders ETF has $38.7 million in its asset base and trades in a paltry volume of about 20,000 shares per day. The ETF charges 76 bps in annual fees.
Fidelity Cloud Computing ETF (FCLD - Free Report)
Fidelity Cloud Computing ETF follows the Fidelity Cloud Computing Index, which reflects the performance of a global universe of companies across the market capitalization spectrum that provide products or services enabling the increased adoption of cloud computing, characterized by the delivery of computing services over the Internet. It holds 53 stocks in its basket, with Oracle being the top firm and accounting for a 5.3% share (read: Will Tech ETFs See Further Selloffs?).
Fidelity Cloud Computing ETF has managed assets worth $70 million and charges 39 bps in fees per year. It trades in a volume of 19,000 shares a day, on average.
First Trust Expanded Technology ETF (XPND)
First Trust Expanded Technology ETF is an actively managed ETF offering broad exposure to information technology companies or financial companies and communication services companies whose operations are principally derived from and/or dependent upon technology (such companies are collectively referred to herein as "Expanded Technology Companies"). It holds 50 securities in its basket with Oracle occupying the top position at 5.1%. XPND charges 65 bps in annual fees.
First Trust Expanded Technology ETF has managed assets worth $20.4 million in its asset base and trades in a daily volume of 3,000 shares on average.