Shares of Oracle Financial Services Software Ltd gave up their day's gains on September 11 as the IT company clarified its parent Oracle Corp's earnings have no direct impact on its business.
"Please note Oracle Financial Services Software Ltd. (OFSS), is a subsidiary of Oracle Corporation and its first quarter results have no direct impact on OFSS business," the company said.
"We hereby clarify that there is no unpublished event/information/announcement relating to operation/performance of the Company which is required to be disclosed to the Stock Exchange(s) that may have a bearing on the price/volume of the Shares of the Company.
"We further request you to take note that since the Shares of the Company are freely traded on the Stock Exchange(s), the Company is unable to comment on the increase in volume of the Shares of the Company," OFSS said in a separate stock exchange filing.
On September 11 at 10:06 am, OFSS shares were trading 0.8% lower at Rs 9,190 apiece after rising 7.5% at the opening tick.
On September 10, the stock rose 10%.
Oracle was the talk of Wall Street on Wednesday trade, with shares skyrocketing 36% to notch their biggest one-day percentage gain since 1992, putting Oracle's market value close to the one-trillion-dollar mark.
The eye-popping stock surge came after the cloud service provider touted several multi-billion dollar contracts with top AI firms, explains Keith Buchanan, senior portfolio manager and partner at GLOBALT Investments.
"That's what really changes the story in the dynamics for Oracle, and it warrants a big shift in how the market views the equity prices for this company. That again, the story has not just evolved, it's been more of a revolutionary change in Oracle's story as far as a cash flow and earnings standpoint going forward," Buchanan told Reuters.
The rally temporarily turned co-founder Larry Ellison into the world’s richest person, with the tech magnate passing Elon Musk for a few hours. AI-related stocks such as chip developer Nvidia Corp. and Asian suppliers also climbed.
Known for its database software, Oracle has recently found success in the red-hot cloud computing market and is emerging as a key provider of AI computing capacity, competing against cloud leaders Amazon.com Inc., Microsoft Corp. and Alphabet Inc.’s Google.
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