Oracle Stock Rises as Market Optimism Rebounds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy ORCL?
Source: Benzinga
- Market Sentiment Rebounds: Oracle's stock rose 2.92% to $161.12 on Tuesday, reflecting a strong potential for market recovery as optimism from Wall Street increases following an overreaction to recent AI-driven selloffs.
- Investment Opportunities Arise: JPMorgan strategists highlighted that the sharp decline in software stocks has created openings for investors, arguing that extreme expectations of AI disruption are unlikely to materialize in the near term, thus providing room for recovery in high-quality software firms.
- Earnings Boost Recovery: Datadog's strong Q4 report, with earnings of $0.59 per share surpassing expectations of $0.39 and a $215 million revenue increase year-over-year, has further propelled the rebound in the software sector.
- Positive Outlook: Morgan Stanley also expressed a bullish view on the software industry, citing improving revenue trends and better earnings revisions, suggesting that large tech companies could benefit from a softer U.S. dollar, thereby enhancing confidence in companies like Oracle.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 156.480
Low
180.00
Averages
309.59
High
400.00
Current: 156.480
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Risks of OpenAI Partnership: While the $300 billion deal with OpenAI appears mutually beneficial, Oracle's heavy reliance on this client, with 58% of its contractual backlog tied to OpenAI, poses risks, especially as the latter could burn through $115 billion in cash by 2029.
- Surging Capital Expenditures: Oracle plans to raise $45 billion to $50 billion through debt and equity financing to support data center infrastructure, which will exacerbate its already high debt load of $100 billion, creating a long-term drag on profitability.
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- Brokerage Decline: Charles Schwab's stock dropped around 9% since Tuesday, with the CEO expressing disappointment over the sell-off during a Bloomberg TV interview, despite the company's efforts to leverage AI for client services.
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See More
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