Why Oracle can rally another 70%, according to investor Victoria Greene

CNBC

21 hours ago

Oracle shares may be rallying on its latest earnings beat, but it still has much higher to go, according to Victoria Greene, chief investment officer at G Squared Private Wealth. The cloud computing company was one of three names Greene discussed on CNBC's " Power Lunch " Thursday – two made her buy list, while one is a hold. Oracle Shares of Oracle rallied 13% on Thursday after the company's fourth-quarter earnings and revenue topped analysts expectations . Although the stock is already up 20% year to date, Greene thinks it isn't too late for investors to get in on the action. "The train is leaving the station, but you've got to jump on the stock," she said. "I see this as a $300 stock in the next 12 months." That would mean a 50% rally ahead, as of Thursday's close. During the earnings conference call after the bell Wednesday, CEO Safra Catz said Oracle's cloud infrastructure revenue should jump by more than 70% in the 2026 fiscal year. "That 70% growth they've had, they're going to blow it out of the water with the continued A.I. investment, especially with Stargate," Greene said. "Everybody's investing in this and it's being built on Oracle." The stock hit a 52-week high on Thursday. IBM IBM has been a favorite of Greene's for some time, and she still loves the stock. She believes it can push "significantly" higher the next two to three years. "This company completely reimagined itself through acquisitions," she said. IBM completed its $6.4 billion acquisition of HashiCorp , a multi-cloud infrastructure automation company, in February. In 2023, it bought software company Apptio . On Tuesday, IBM announced its plan to develop a large-scale, fault-tolerant quantum computer, Quantum Starling. "They have great strategic partners," Greene said. "They even talk about their patient zero for using AI and they're saving $3 billion — 20% to 30% of their code is now being built on their AI." "This stock is touching everything you want to touch right now," she added. Shares of IBM hit a 52-week high on Thursday and are up about 28% year to date. Datadog Greene is staying on the sidelines with Datadog , which popped nearly 3% on Thursday after an upgrade to outperform at Wolfe Research. She said she'd like to see the cloud computing stock trade above its 200-day moving average, which is around $123. "It's got headwinds on margins, controlling costs [and] on competition," Greene said. "It's got a fantastic, definite product that is being utilized, but at the same point, they're kind of stalling out on their cross selling. You haven't seen a massive increase in the number of companies that are increasing their number of modules," she added. Shares are down 14% year to date.