Three Stock Lunch: Oracle, IBM and Datadog
Victoria Greene, chief investment officer of G Squared Private Wealth Management, joins CNBC's "Power Lunch" to discuss three stocks: Oracle, IBM and Datadog.
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CNBC
2 hours ago
- CNBC
These stocks, including Oracle, are among the most overbought on Wall Street
Several stocks could soon be due for pullbacks after seeing sizable gains this week, according to a widely-used technical indicator. Stocks took a hit Friday after Israel launched a series of airstrikes on Iran in the largest attack on the Islamic Republic since the Iran-Iraq war in the 1980s. Following Israel's attack, which killed at least three of Iran's senior military leaders, Iran launched more than 100 drones toward Israel. The attacks sent investors out of stocks and into safe-haven assets like the U.S. dollar and gold, both of which rallied Friday. The S & P 500 finished Friday's session down more than 1%, making the week-to-date loss 0.4%. The Nasdaq Composite and the Dow Jones Industrial Average also finished in the red for the period, posting a loss of 0.6% and 1.3%, respectively, on the week. Using the stock screener tool , CNBC Pro looked for the most overbought and oversold stocks by measuring their 14-day relative strength index, or RSI. An RSI reading above 70 can indicate that a stock may be overbought and move lower in the near term, while an RSI below 30 might signal that a stock is oversold and see a future move higher. Oracle was the most overbought stock in the S & P 500 this past week, with an RSI around 90.4. Shares of the software maker rose almost 8% on Friday, reaching an all-time high and extending Thursday's 13% rally. Over the course of the entire week, Oracle surged 24%. Analysts surveyed by LSEG have an average price target on the stock of around $205, implying almost 5% downside from Friday's closing level, although many of those targets may rise in the wake of Oracle's latest earnings this week. Most of the week's gains came after Oracle's fiscal fourth quarter results topped Street estimates. CEO Safra Catz said cloud infrastructure revenue is expected to rise more than 70% in fiscal 2026, adding that the fiscal year "will be even better as our revenue growth rates will be dramatically higher." Micron Technology also showed up among the most overbought stocks, with an RSI of 85.1. Shares jumped more than 6% over the past week, its third straight weekly gain, putting its year-to-date gain at more than 37%. The stock was marginally lower on Friday, snapping a nine-day advance. Thursday, Micron announced plans to invest about $200 billion in U.S. semiconductor manufacturing in a move that will create 90,000 direct and indirect jobs. J.M. Smucker was on the week's oversold list, with an RSI around 27. Though most Wall Street analysts rate the peanut butter and jelly maker no more than a hold, according to LSEG ,the consensus price target of $113 implies more than 18% upside from Friday's close. Shares came under pressure in the past week, falling 14%, after fiscal fourth-quarter revenue of $2.14 billion missed the $2.18 billion that analysts polled by FactSet had expected, though earnings topped estimates. Smucker's full-year earnings guidance also missed Street expectations. The stock has now fallen in seven out of the past eight weeks. PG & E shares fell 13% this week, its fourth straight weekly decline, and the California utilility now has an RSI of 20.6. The stock has taken a beating this year, tumbling 32% compared to 1.6% rise in the S & P 500.
Yahoo
2 hours ago
- Yahoo
TakeUp's AI platform available on Oracle Cloud Marketplace for revenue optimisation
TakeUp, a provider of AI-powered revenue optimisation platforms for independent hotels, has announced its availability on Oracle Cloud Marketplace. The platform can be deployed on Oracle Cloud Infrastructure (OCI) and integrates with Opera Cloud via the Oracle Hospitality Integration Platform (OHIP). This integration aims to enhance hotel revenue management strategies through AI-driven solutions. TakeUp CEO Bobby Marhamat said: 'Making TakeUp available on the Oracle Cloud Marketplace is a game-changer for independent properties looking to level up their revenue strategy beyond traditional yield management. 'TakeUp's participation in Oracle Cloud Marketplace further extends our commitment to the Oracle community and enables customers to reap the benefits of TakeUp's AI-powered revenue management platform. We look forward to leveraging the power of Oracle Cloud Infrastructure to help us achieve our business goals.' The TakeUp hotel revenue management platform combines AI-powered learning models with personalised guidance from revenue strategists to optimise room rates in real-time. This approach ensures that shifting demand, market conditions, and guest behaviour are analysed through machine learning and refined with human expertise to maximise revenue impact. Revenue managers face an overwhelming number of pricing decisions daily. TakeUp claims to streamline this process by automating complex, time-consuming tasks. The platform runs real-time simulations across countless scenarios, dynamically adjusting rates to match shifting market conditions. TakeUp acts as a partner, allowing revenue managers to focus on high-level decision-making while continuously optimising their pricing strategies. Through this integration, revenue managers can access near real-time price sensitivity analysis, enabling them to fine-tune rates with data-backed precision. A continuous feedback loop refines future strategies for revenue and profitability. Intelligent automation saves time by automatically running simulations and adjusting rates based on market conditions, reducing manual guesswork. Oracle Cloud Marketplace serves as a centralised repository for enterprise applications offered by Oracle and its partners. It provides Oracle customers with trusted business applications and services that offer unique solutions. Designed to run any application faster and more securely, OCI offers more than 150 AI and cloud services. It is claimed to address data privacy, sovereign AI, and low-latency requirements, providing consistent performance and global pricing. "TakeUp's AI platform available on Oracle Cloud Marketplace for revenue optimisation" was originally created and published by Hotel Management Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Business Insider
8 hours ago
- Business Insider
Oracle Stock (ORCL) Delivers Strong Quarter as Cloud and AI Strategy Pays Off
Oracle (ORCL) has just wrapped up its quarterly reporting period with impressive results. Revenue rose 11% year-over-year to $15.9 billion, beating expectations with ease. Non-GAAP earnings per share came in at $1.70, topping the consensus estimate of around $1.65. In my view, Oracle's bold investments in Cloud services—particularly Oracle Cloud Infrastructure (OCI)—are clearly bearing fruit. I'm bullish on the stock, as Oracle continues to demonstrate resilience and leadership in both Cloud and AI. Confident Investing Starts Here: Cloud Growth Takes Center Stage Oracle's Cloud segments were the clear standouts in Q4. Total Cloud revenue—which includes both Infrastructure as a Service (IaaS) and Software as a Service (SaaS)—jumped 27% year-over-year to roughly $6.7 billion. The real highlight was Oracle Cloud Infrastructure (OCI), which surged 52% to reach $3 billion, underscoring Oracle's aggressive push to capture AI-heavy workloads in the Cloud Infrastructure space. A key driver behind Oracle's Cloud momentum is its smartly executed multi-cloud strategy. On the earnings call, Larry Ellison revealed that Oracle's MultiCloud database services—used by customers on Amazon (AMZN), Microsoft Azure (MSFT), and Google Cloud (GOOGL) —soared 115% quarter-over-quarter. This approach is savvy, as it turns would-be rivals into collaborators. With enterprise demand rising for hybrid and multi-cloud solutions, Oracle is carving out a distinct competitive edge among the major cloud providers. Record Backlog Signals Solid Revenue Growth Ahead One of the key reasons I'm bullish on Oracle's long-term growth is its record-high backlog of contracts, formally known as Remaining Performance Obligations (RPO). This quarter, RPO surged 41% year-over-year to an all-time high of $138 billion. That's a strong signal of sustained demand, providing a significant level of revenue visibility and stability for shareholders over the coming years. Management attributed much of this backlog growth to major contracts with companies like OpenAI, Meta (META), Nvidia (NVDA), and AMD (AMD). CEO Safra Catz expressed evident enthusiasm, projecting that Oracle's Cloud business will grow by more than 40% in Fiscal 2026, with OCI continuing to expand at a rate above 70%. Oracle deserves real credit here—its momentum is undeniable, and Larry Ellison remains the quintessential relentless tech visionary, pushing the company to the forefront of the Cloud and AI revolution. Heavy Investment Is Necessary for Moat Building Scaling Oracle's Cloud business comes with a hefty price tag. In FY2025, the company invested roughly $21.2 billion in capital expenditures, reflecting its aggressive buildout of GPU clusters and data centers. While these substantial investments did put some pressure on margins—non-GAAP operating margin dipped slightly to about 44%, down from 47% last year—I view this as a reasonable and strategically sound tradeoff. Crucially, Oracle remains solidly profitable and financially strong. Operating cash flow for the year reached an impressive $20.8 billion, providing the company with ample capacity to reinvest in future growth. Management made it clear on the earnings call that these upfront investments are designed to drive high-margin, recurring revenue over time, essentially laying the groundwork for long-term profitability. With around $18 billion in cash and short-term investments, Oracle appears to have the financial flexibility to fund its expansion without overburdening its balance sheet. Oracle Faces Substantial but Surmountable Risks While I'm optimistic about Oracle's growth potential, it's essential to acknowledge the risks. Management's aggressive expansion strategy hinges on flawless execution and sustained demand. If enterprise IT spending slows, if overall demand for public Cloud services weakens, or if customers shift more quickly toward AWS or Azure, Oracle's growth trajectory could face headwinds. Additionally, Oracle is making significant capital investments while also aiming to deliver strong returns to shareholders. This high-stakes approach means that any misstep or shortfall in demand could result in the company having costly, underutilized infrastructure. However, given Oracle's recent track record, management's demonstrated competence, and the sheer scale of its secured backlog, I believe these risks are manageable and well within the company's capacity to navigate. Is Oracle Stock a Good Buy? On Wall Street, Oracle has a consensus Moderate Buy rating based on 15 Buys, 12 Holds, and zero Sells. The average ORCL price target of $192.91 indicates a 3.5% downside potential over the next 12 months. This means that, despite the company's current operational and financial strengths, the market has likely priced Oracle stock too high in the short term. It's probably best to wait for a pullback before buying shares. Oracle's Ambitious Bet Has Paid Off Oracle's quarterly results strengthen my confidence in the sustained upward trajectory of Oracle's operating model. What was once a bold and uncertain Cloud transformation is now clearly delivering results. Oracle's heavy investment in OCI, its strategic focus on multi-cloud architecture and partnerships, and its sizable backlog of signed contracts all point to long-term, market-leading growth that appears both durable and well-earned.
