What happened

Shares of Oracle (NYSE:ORCL) rose 10.5% in June 2017, according to data from S&P Global Market Intelligence.

So what

On June 21, Oracle delivered a rock-solid earnings report. Earnings increased 10% year over year to land at $0.89 per share, based on a 3% revenue jump to $10.9 billion. Analysts had been expecting both the top and bottom lines to fall rather than grow. Share prices rose as much as 11.9% the next day.

Large computer servers against a background of clouds in a blue sky

Image source: Getty Images.

Now what

The company is leaning into the cloud computing market with confidence. Software-as-a-service sales jumped 67% higher year over year, and infrastructure-as-a-service platforms saw 40% larger order volumes. That trend should keep Oracle relevant as the enterprise software market reshapes itself around cloud-based service models, and it's also good news for the company's profit margins. That being said, Oracle is playing with fire because cloud computing also represents a serious threat to the company's traditional database products. Management needs to continue to execute as Oracle clears a path through the cloud-computing jungle. It's an interesting stock, but Oracle is far from the best cloud computing investment on the market today.

Anders Bylund has no position in any stocks mentioned. The Motley Fool owns shares of Oracle. The Motley Fool has a disclosure policy.