While there are questions about a contract that will ultimately add more than $30 billion in revenue annually, Bernstein analysts think the arrangement will bring Oracle closer to its larger cloud competitors.

Oracle Corporation (NYSE: ORCL) rallied after the announcement of a cloud services agreement that would lead to over $30 billion in annual revenue starting in FY 2028. This is part of many larger cloud deals signed recently that have caused ORCL stock to surge by 31% year-to-date.

Oracle stock is hovering just above the record-high close it recorded Monday, propelled by the cloud computing giant's disclosure of new deals, including one worth an estimated $30 billion a year.