The market misinterpreted Oracle, which reported encouraging results following the bell on Wednesday, an analyst said on Wednesday.
"As long as the cloud starts to grow faster than the base model, or the core business is deteriorating, that's good for Oracle," said Wells Capital's Ann Miletti at CNBC's "Closing Bell."
Oracle outperformed earnings estimates for its fiscal fourth quarter and saw stocks pop up to 9 percent in after hours trading.
Miletti said Oracle needs its growth to continue "on the cloud side," saying the company needs to "see it translate into revenue growth," something she believes Oracle has not yet achieved.
Meanwhile, another analyst said good profit growth is the key to continued market success for the rest of the year.
"We started seeing it in the first quarter and we think it can continue here in the second quarter when results come in a few weeks," said Eric Marshall, research director at Hodges Funds at Closing Bell.
Marshall emphasized that sectors that are lagging behind in the current market, such as discretionary consumption and financials, could see an increase in the second half of the year. He cited Tower Semiconductor and Eagle Materials as two examples of companies he believes will receive a boost soon.
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