Oracle, Adobe, Virgin Galactic, and US Insurance Companies: Stock Market Weekly Digest (12-16 June)
16.06.2023
4 minutes for reading
Oracle, Adobe Systems, Virgin Galactic, and US insurance companies were in the spotlight this week. Let’s find out how their stocks reacted to the latest developments.
Oracle report: annual profit increased by 27%
Oracle Corporation, one of the world’s largest software manufacturers, reported its fourth-quarter and full-year 2023 results on Monday 12 June. Compared to the statistics for the corresponding period of the last year, revenue for March to May increased by 16.87% to 13.84 billion USD, and net profit was up 4.08% to 3.32 billion USD or 1.19 USD per share.
Oracle Corporation’s full-year revenue added 17.70%, reaching a record 49.95 billion USD. Annual net profit amounted to 8.50 billion USD or 3.07 USD per share, showing an increase of 26.59%. The corporation’s Board of Directors announced a quarterly dividend payout of 0.40 USD per share.
On the same day, Oracle Corporation (NYSE: ORCL) stock gained 5.99%, reaching 116.43 USD per share at the close of trading. The company's quotes rose by 15.20% to 126.55 USD since the beginning of the week.
Insurance stocks tumbled sharply
UnitedHealth Group Incorporated (NYSE: UNH), one of the US largest health insurance companies, saw a 6.40% drop in its stock price, down to 459.86 USD per share on Wednesday 14 June. This is probably how the market reacted to a speech by the corporation’s CEO Tim Noel at the Goldman Sachs Conference.
Noel stated that during the Covid-19 pandemic, many elderly patients had their non-urgent elective surgeries postponed. This could presumably mean that the number of scheduled operations will surge in the near future, and health insurance companies’ costs will rise.
Truist Financial Corporation analysts on Wednesday maintained their buy rating of UnitedHealth Group Incorporated stock but cut the target price from 610 USD to 580 USD per unit. On the same day, other US health insurance companies also saw their stocks go down:
- Humana Inc. (NYSE: HUM): −11.24% to 455 USD
- CVS Health Corp (NYSE: CVS): −7.76% to 66.65 USD
- Centene Corp (NYSE: CNC): −6.94% to 64.65 USD
- Elevance Health Inc. (NYSE: ELV): −6.89% to 436.33 USD
- Cigna Corp. (NYSE: CI): −3.11% to 263.77 USD
Adobe Systems report: profit increased by 10%
Major US software developer Adobe Systems Incorporated (NASDAQ: ADBE) released its Q2 fiscal 2023 results on Thursday 15 June. At the end of the trading day, the company’s stock added 2.37%, rising to 490.91 USD per share. It is worth noting that the quotes have been rising for six consecutive trading sessions, showing a growth of 17.35%.
Adobe Systems Incorporated's revenue for the March to May period increased by 9.80% to 4.82 billion USD, and net profit rose 9.93% to 1.30 billion USD or 2.83 USD per share. Management expects revenue for the third quarter to reach 4.83-4.87 billion USD, and EPS to be 2.82-2.88 USD. As for the full-year 2023 forecast, the company hopes that revenue will reach 19.25-19.35 billion USD, and EPS will be 11.15-11.25 USD.
Adobe Systems Incorporated CEO Shantanu Narayen said with confidence that the company will lead the era of generative artificial intelligence thanks to its own revolutionary innovations and massive data set.
Virgin Galactic announced the launch of a commercial programme
Virgin Galactic Holdings Inc. (NYSE: SPCE) shares plunged 7.73% at the close of the trading day on Thursday, dropping to 4.06 USD per share. However, in post-market trading, they surged 43.84% to 5.84 USD. The rise is likely attributed to the news that the company, specialising in space tourism, is launching a commercial flight programme.
According to information from the official website of Virgin Galactic Holdings Inc., the first commercial flight, Galactic 01, is scheduled for 27 to 30 June this year. Three crew members of the Italian Air Force and the National Research Council of Italy will go to space to conduct research in conditions of microgravity.
The second flight, Galactic 02, is expected in early August, followed by monthly flights. The Galactic 02 crew has not been announced yet, but the corporation hinted that it may include tourists who booked their seats several years ago.
Summing up
Oracle Corporation and Adobe Systems Incorporated released their financial reports this week, with the stocks of both corporations showing growth.
US health insurance companies saw a significant decline in their stocks, which is attributed to investors’ concern about increasing costs for planned surgeries.
Virgin Galactic Holdings Inc. announced the launch of a commercial programme, which lead to its stock gaining 44% in post-market trading. The space flights are scheduled for approximately late June and early August this year.
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