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Oracle stock hits all-time high after earnings

Emily Bary

Shares of Oracle Corp. were up 8.8% in Thursday morning trading and on track to close at a new all-time high after the software company beat earnings expectations and delivered an upbeat outlook. The stock hit a new intraday record of $57.31 at its high point in Thursday's session. Shares are on pace for their largest single-day percentage gain since Dec. 18, 2014. Oracle spent $36 billion in its latest fiscal year on stock purchases, helping drive the share price higher, as Oracle's share count decreased by about 12% from a year earlier. Despite the record price high, the market capitalization remains below levels seen late last year. "We believe that there are clear areas of strength in Oracle's apps business - NetSuite in particular - but until this uptick in growth starts to translate into more consistent operating income (i.e. not just buyback driven EPS growth) and apps growth (only +4% in [constant currency]), we expect the stock is likely to remain relatively range bound," wrote Evercore ISI's Kirk Materne, who has an in-line rating on the stock. Shares are up 27% so far this year, as the S&P 500 has gained 17%.