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Oracle (ORCL) Stock Gets $275 Target as Evercore Highlights Long-Term OCI Growth [Yahoo! Finance]

Evercore Inc. Class A (EVR) 
Last evercore inc. class a earnings: 4/22 06:00 am Check Earnings Report
Company Research Source: Yahoo! Finance
The firm is confident in Oracle's long-term OCI growth post-quarterly results, highlighting $76B cloud revenue potential and lease math supporting OCI ramp. Citing Oracle's earnings call, Evercore ISI noted that the company doesn't need to start paying for the leases until the data center is delivered to the company. This will spread the seemingly large figure over the course of 15-19 years. Assuming an average length of 17 years, it said that the annual cost works out to be an estimated $14.5B, or $1.2B per month. This level of spending will get an estimated 7.6GW of DC power. The firm went a step further to work out annualized revenues, which it believes will be around $76B if each megawatt can support $10M of annual GPU cloud revenue. Evercore ISI highlighted two key takeaways from these calculations. “1) The above math would equate to leases being about 18% of the total cost to support the cloud revenue, which is largely in line with Oracle's comments at the analyst day; Show less Read more
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