Israeli software company Beamr Imaging’s (NASDAQ:BMR) stock rose 32% overnight after getting a shoutout from Oracle (NASDAQ:ORCL).
Oracle said that Beamr’s software is now on its cloud marketplace, giving those customers easy access to it.
BMR stock rose from $4.40 on June 11 to $5.80 before trading opened this morning, bringing its market capitalization to just $87 million. Oracle rose 7.5% after earnings and opened at $133/share, with a market cap of over $372 billion.
Leave It to Beamr
Beamr’s software cuts the size of imaging files in half. This lets companies store more video in the cloud and move files around quickly. More importantly, they can add artificial intelligence (AI) features without a performance penalty. The company’s software suite is enabled by Nvidia (NASDAQ:NVDA) hardware and ray tracing software. Beamr allows quick translation of images and video into the emerging AV1 standard from AVC/H.264.
As with most cloud applications, the costs start low but accelerate with adoption. Beamr charges as little as 25 cents/gigabyte for video optimization services and 20 cents if you buy it by subscription. But cloud requirements mean 10 TB/month workloads are not uncommon, which are priced at $800-$1,200.
Oracle was late to the cloud race but has invested heavily in catching up to its software peers in recent years. The May quarter set new records, with earnings of $1.63/share on revenue of $14.3 billion. This was short of analyst forecasts but impressed investors, thanks to cloud infrastructure and AI deals.
ORCL stock has also been playing catch-up. It’s now up 19% in 2024 and has jumped 132% since mid-2019. This has boosted the fortune of founder Larry Ellison to $153 billion, putting him fifth on the Forbes 400 list.
BMR Stock: What Happens Next?
Many small Israeli technology companies have emerged in the last few years, only to be snapped up by larger players after coming public. Beamr is a candidate for that, especially since its technology is a great fit with the medical software from Oracle’s Cerner unit.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
As of this writing, Dana Blankenhorn had a LONG position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
