‘Take the Advantage of the Dip,' Says Top Investor About Oracle Stock
Thus far, 2025 has not necessarily been one of celebration and good cheer for investors in many of the large technology firms. Oracle (NYSE:ORCL) is no exception.
Stay Ahead of the Market:
Discover outperforming stocks and invest smarter with Top Smart Score Stocks.
Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener.
The company has been caught up in a number of trends putting pressure on tech stocks, including tariff worries and rising fears surrounding a global slowdown.
In addition, the company's most recent Fiscal 2025 Third quarterly report published in early March (Oracle's fiscal year runs from June 1 st – May 31 st) gave investors pause. Oracle's revenues of $14.13 billion – representing year-over-year growth of 6% – missed expectations by -$259.18 million, while its EPS GAAP of $1.02 missed by -$0.04.
All told, ORCL is down almost 20% for the year.
Top investor Gary Alexander isn't worried by the recent drop. On the contrary, he thinks it is time to take advantage of the dip, and jump on board.
'Already one of the world's most dominant software companies, the company has built up a massive deferred revenue backlog that is pre-empting a sharp acceleration in revenue next year,' asserts the 5-star investor, who is in the top 3% of TipRanks' stock pros.
Alexander points to numerous reasons for optimism, starting with the company's exceptionally broad product offerings. Oracle's broad portfolio extends well beyond database software, encompassing a wide range of cloud applications covering sales, finance, and more. This gives Oracle a decisive leg up over would-be competitors, the investor explains.
'In my view, the recent trends of greater IT budget scrutiny will make it tougher for smaller, single-app companies to land deals, and push more business toward large portfolios like Oracle,' adds Alexander.
Moreover, the demand for ORCL's database services has been increasing, notes the investor. Alexander points out that GPU consumption for AI model training on the Oracle platform has more than tripled during the past year.
The company is expecting to almost double revenue growth during the next year, further explains Alexander, thanks to its 'substantial' backlog of sales. And revenues should continue accelerating going forward, believes the investor, who points out that Oracle has guided for 20% growth in Fiscal Year 2027.
'Stay long here and use this year's dip as a buying opportunity,' concludes Alexander, who rates ORCL a Buy. (To watch Alexander's track record, click here)
By and large, Wall Street agrees with this assessment. With 15 Buy and 13 Hold ratings, ORCL enjoys a Moderate Buy consensus rating. Its 12-month average price target of $182.32 has an upside of ~35% in the year ahead. (See ORCL stock forecast)
To find good ideas for AI stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
5 hours ago
- Globe and Mail
Oracle Stock Jumps on Q4 Earnings Beat, Upbeat Cloud Forecast
Oracle ORCL stock rose more than 7% in extended-hours trading after the company reported its fourth-quarter fiscal 2025 earnings, wherein both top and bottom lines beat the Zacks Consensus Estimate. Oracle also raised its annual revenue growth forecast, betting on robust demand for its cloud offerings from companies deploying artificial intelligence. The company reported fourth-quarter fiscal 2025 non-GAAP earnings of $1.70 per share, which beat the Zacks Consensus Estimate by 3.66% and increased 5% year over year in USD and 3% in constant currency (cc). Revenues rose 11% in USD and cc year over year to $15.9 billion, driven by continued momentum from its Oracle Cloud Infrastructure ('OCI') business, including winning cloud-computing contracts from AI-focused startups. The figure beat the Zacks Consensus Estimate by 2.31%, encouraging investors' enthusiasm for the company's ascendant cloud business. Revenues from the Americas increased 12.2% year over year to $10.03 billion and accounted for 63.1% of total revenues. Europe/Middle East/Africa climbed 12.9% year over year to $3.99 billion and contributed 25.1% of total revenues. The remaining revenues came from Asia Pacific, which increased 3.9% year over year to $1.87 billion. ORCL's cloud infrastructure business is racing to build out computing capacity for AI startups and other users of the cloud. The company has long tried to find its footing in the lucrative industry of renting computing power and storage, which is dominated by much larger rivals led by AMZN -owned Amazon Web Services, Alphabet GOOGL -owned Google and Microsoft MSFT. Shares of Oracle have gained 5.8% so far this year, outperforming the Zacks Computer and Technology sector's growth of 2.4%. Shares of Microsoft have returned 12.1% year to date, while Amazon and Google have declined 2.8% and 6.3%, respectively. ORCL's Q4 Top-Line Details Cloud services and license support revenues increased 14% year over year and in cc to $11.7 billion, driven by OCI, strategic cloud applications and cloud database services. Cloud license and on-premise license revenues increased 9% year over year (up 8% at cc) to $2 billion. The company's strategic SaaS products are seeing strong bookings and higher renewal rates, contributing to accelerated growth. Total cloud revenues (SaaS plus IaaS) were up 27% year over year at $6.7 billion. Cloud Infrastructure (IaaS) revenues came in at $3 billion, up 52% year over year. Cloud Application (SaaS) revenues of $3.7 billion increased 12% year over year. Fusion Cloud ERP (SaaS) revenues came in at $1 billion, up 22% year over year. NetSuite Cloud ERP (SaaS) revenues of $1 billion increased 18% year over year. Hardware revenues were $850 million, up 1% year over year (flat in cc). Services revenues decreased 2% year over year and in cc to $1.34 billion. Oracle is currently live in 23 cloud regions with its database in cloud services and has another 47 planned. Database subscription revenues, which include database license support, were up 7%. Infrastructure subscription revenues in the quarter, which include license support, were $6.7 billion, up 19%. Application subscription revenues, which include product support, were $5 billion, up 8% year over year. The company's strategic back-office SaaS applications now have annualized revenues of $9.3 billion and were up 20%. Software license revenues were up 8% to $2 billion. Oracle Cloud Infrastructure consumption revenues were up 62% and demand continues to dramatically outstrip supply. Infrastructure cloud services now have an annualized revenues of nearly $12 billion. Cloud database services, which were up 31%, now have annualized revenues of $2.6 billion. Autonomous Database consumption revenue was up 47% on top of the 27% growth reported last year. As on-premise databases migrate to the cloud, either on OCI directly or through the company's database at cloud services with Azure, Google or AWS, Oracle now expects that cloud database revenues collectively will be the third driver of revenue growth alongside OCI and strategic SaaS. Operating Details of Oracle The non-GAAP total operating expenses increased 16% year over year and in cc to $8.86 billion. The non-GAAP operating income was $7.03 billion, up 5% year over year and 4% at cc. The non-GAAP operating margin was 44%, which contracted 244 basis points (bps) on a year-over-year basis and 266 bps in cc. ORCL's Q4 Balance Sheet & Cash Flow As of May 31, 2025, Oracle had cash & cash equivalents and marketable securities of $11.2 billion compared with $17.8 billion as of Feb. 28, 2025. Operating cash flow came in at $20.8 billion while this Zacks Rank #4 (Sell) company reported a negative free cash flow of $394 million, respectively. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. ORCL's remaining performance obligations now stand at $138 billion, up $8 billion sequentially and 41% from last year. Cloud RPO grew 56% on top of the 80% growth last year and now represents nearly 80% of total RPO. Approximately 33% of the total RPO is expected to be recognized as revenues over the next 12 months. The company purchased more than 1 million shares for a total of $150 million. Oracle also announced that its board of directors declared a quarterly cash dividend of 50 cents per share of outstanding common stock. This increased dividend will be paid to stockholders of record as of the close of business on July 10, 2025, with a payment date of July 24, 2025. Guidance For the first quarter of fiscal 2026, Oracle provided specific financial targets assuming current currency exchange rates. Total revenues are expected to grow 11-13% in cc and 12-14% in USD. Total cloud revenues are projected to grow 26-30% in both cc and USD. Non-GAAP earnings per share are expected to be in the range of $1.44-$1.48 in cc (representing 4-6% growth) and between $1.46 and $1.50 in USD (representing 5-7% growth). The guidance assumes a base tax rate of 19%, though management noted that one-time tax events could cause actual rates to vary. Currency is expected to have a modest 2 cents positive effect on EPS and a flat to 1% positive effect on revenues, depending on rounding. Oracle provided robust guidance for fiscal 2026, expressing strong confidence in accelerating growth rates. The company expects total cloud revenues (applications plus infrastructure) to grow more than 40% in cc, representing a significant acceleration from the 24% growth achieved in fiscal 2025. Cloud infrastructure revenues are projected to grow even more dramatically at over 70%, up from 51% in the prior year. Total company revenues are expected to reach at least $67 billion, representing 16% growth in cc and exceeding their previous guidance by more than $1 billion. RPO is anticipated to grow more than 100% in fiscal 2026, reflecting strong contracted future business. Oracle also indicated that capital expenditures will increase substantially to more than $25 billion in fiscal 2026, up from $21.2 billion in fiscal 2025, as they work to meet overwhelming demand from their backlog and bring more capacity online. Management expressed confidence that this increased investment will drive further revenues and profit growth acceleration. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report
Cision Canada
7 hours ago
- Cision Canada
Rockwell Automation Helps Customers Unlock the Potential of Their Data with the Launch of OptixEdge
Advanced edge gateway solution transforms the way data is processed, enabling time and cost savings MILWAUKEE, Wis., June 12, 2025 /CNW/ -- Rockwell Automation, Inc. (NYSE: ROK), the world's largest company dedicated to industrial automation and digital transformation, today announced the global launch of OptixEdge, an innovative edge gateway solution that revolutionizes data processing for industrial customers. Today's smart machines are generating more data than ever, but according to Rockwell's latest State of Smart Manufacturing Report, only 44% of data is being used effectively. Many companies face challenges that prevent them from utilizing a vast amount of their data, such as network limitations, security concerns, or storage costs. Traditionally, data is sent to distant cloud servers to be processed, but this can be expensive and inefficient. OptixEdge can directly address these issues by processing information where it's created – at the machine, in real time. It connects to the user's control system through Rockwell's FactoryTalk® Optix™ software to collect, analyze, and send data to the cloud, enabling users to monitor and analyze machine or system data from multiple locations. This means faster insights, lower costs, and smarter decision-making. "OptixEdge empowers customers to take control of their data like never before, providing powerful edge computing capabilities with flexibility, security, and ease of use," said Jessica Morell, software product manager at Rockwell Automation. "By processing data at its source, OptixEdge enables customers to unlock valuable insights, improve efficiency, and drive innovation across their operations." Key capabilities of OptixEdge include: Built-in Wizard App: A pre-installed FactoryTalk Optix application simplifies the data collection process and allows for easy configuration using only a web browser, cutting down on engineering time. It also offers the ability for users to build and deploy custom applications, if preferred. Designed for efficiency: Allows lightweight applications to run in tandem with included software. Secure remote access and troubleshooting: Remote assistance is available through FactoryTalk® Remote Access™, allowing remote engineers and maintenance teams to program, configure and troubleshoot systems over a secure VPN connection. Open and flexible: OptixEdge can be utilized in conjunction with a plant or machine's existing Rockwell hardware or third-party graphic terminals and controllers. Cost savings and network performance improvement: OptixEdge offers users the ability to send less data to the cloud, which can help save money on storage and improve network performance. Learn more about Rockwell's innovative OptixEdge solution on Rockwell's website. About Rockwell Automation Rockwell Automation, Inc. (NYSE: ROK) is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 27,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2024. To learn more about how we are bringing the Connected Enterprise® to life across industrial enterprises, visit
CTV News
7 hours ago
- CTV News
Oracle shares soar as AI cloud demand propels revenue forecast
Oracle shares surged nearly eight per cent in premarket trading on Thursday after the company raised its annual revenue forecast, driven by strong demand for its AI-related cloud services. The stock has risen nearly six per cent so far this year as confidence in the software sector remained strong despite geopolitical tensions, even as analysts warn that U.S. President Donald Trump's tariffs could undermine Big Tech's AI investments. Earlier this year, Oracle, whose cloud offerings help companies build their AI infrastructure, announced a joint venture called Stargate to deliver large-scale computing capabilities to OpenAI. 'Oracle's once-stodgy image levels up to 'cloud-native mage,' and the competitive map now looks less like a classic three-player real time strategy and more like a battle-royale with everyone dropping in, looking for compute loot,' said Michael Ashley Schulman, partner at Running Point Capital Advisors. Oracle expects total revenue to be at least US$67 billion for fiscal 2026, CEO Safra Catz said on a post-earnings call. The Texas-based company's cloud services quarterly revenue rose 14 per cent to $11.70 billion. Its overall revenue of $15.90 billion beat estimates of $15.59 billion. At least nine brokerages have raised their price target post-earnings. Oracle trades at a forward price-to-earnings ratio of 25.86, compared to rivals Microsoft at 31.34 and Amazon at 31.80, according to data compiled by LSEG. Microsoft's stock has gained 12.16 per cent, while Amazon's has decreased by 2.8 per cent so far this year. 'ORCL has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late 90s,' analysts at Piper Sandler added. (Reporting by Rashika Singh in Bengaluru; Editing by Tasim Zahid)
