Oracle Wins CMS Cloud Contract To Power Medicare, Medicaid Modernization
- Finance
ThePostMaster- 0
- 8 minutes read
Oracle Corp (NASDAQ:ORCL) shares are trading lower Wednesday morning after initially surging in early trading after the Centers for Medicare & Medicaid Services (CMS) selected Oracle Cloud Infrastructure (OCI) to host key mission-critical systems. Here’s what investors need to know.
The federal health agency will shift select on-premises workloads to OCI as part of an IT modernization effort, leaning on Oracle’s FedRAMP High-authorized cloud to meet strict federal security and compliance requirements.
According to the company, OCI is expected to provide CMS with improved performance and scalability, cost efficiencies from consolidating systems and access to integrated analytics and AI tools that can support data-driven decision making and automation initiatives.
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Oracle will also supply migration planning and technical support as CMS transitions workloads to the new environment.
The CMS win adds to Oracle’s growing roster of U.S. federal cloud customers and underscores its push to compete more actively with rivals in government infrastructure deals. Oracle shares initially moved significantly higher following the announcement. Shares have traded within a range of $163.66 to $155.55 on Wednesday.
Currently, Oracle is trading 5.6% below its 20-day simple moving average (SMA) and 29.2% below its 100-day SMA, demonstrating longer-term weakness. Shares have decreased 9.37% over the past 12 months and are positioned closer to their 52-week lows than highs.
The RSI is at 42.31, which is considered neutral territory. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
Key Resistance: $163.50
Key Support: $154.50
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Oracle provides enterprise applications and infrastructure offerings through a variety of flexible IT deployment models, including on-premises, cloud-based, and hybrid.
Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system, which is commonly used by the world’s largest companies for high-volume online transaction processing workloads.
