‘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
Cision Canada
29 minutes ago
- Cision Canada
T.D. Williamson Announces Strategic Investment from Apollo Funds
TULSA, Okla., June 10, 2025 /CNW/ -- T.D. Williamson ("TDW"), a global leader in pipeline infrastructure technology and services, announced today a strategic investment from funds managed by Apollo (NYSE: APO) (the "Apollo Funds"). SCF Partners, a Houston-based private equity firm specializing in energy & infrastructure services investments that acquired TDW in June 2022, will continue to retain a majority ownership stake. TDW has been a leader in the pipeline maintenance and integrity industry for over 100 years. The company offers a comprehensive suite of maintenance and asset optimization solutions that enhance safety, reliability, and performance throughout the full lifecycle of pipeline infrastructure. A recognized technology leader, TDW holds more than 500 registered patents, including innovations in advanced isolation, integrated pigging, in-line integrity assessment and repair — deployed across both infrastructure and utility end markets. Bob McGrew, CEO of TDW, said, "At TDW, we are committed to delivering best-in-class, technically differentiated solutions to support the evolving needs of the operators of critical pipeline infrastructure. This investment by Apollo Funds, alongside our existing relationship with SCF Partners, marks a significant milestone in our journey as we continue to invest in meeting the needs of our customers through innovation and expanding our global reach." Scott Browning, Partner at Apollo, said, "TDW has a long track record of innovation and serving customers across the pipeline industry value chain. We look forward to supporting TDW management and SCF to accelerate strategic growth initiatives that contribute to the safety, reliability and efficiency of energy infrastructure to help serve global energy demand trends." "For over a century, TDW has stood at the forefront of pipeline integrity and innovation," commented Deviyani Misra-Godwin, Managing Director at SCF. "Over the past three years, we've seen tremendous growth in the company, with the team expanding its technology and product portfolio, deepening customer relationships, and continuing to lead the way on safety and operational excellence. We're honored to continue to work alongside TDW's world-class team and excited to welcome Apollo Funds as a strategic partner in this next chapter of growth." TDW and SCF Partners were advised by Vinson & Elkins LLP, while Kirkland & Ellis LLP advised the Apollo Funds. About T.D. Williamson T.D. Williamson ("TDW") serves the gathering, transmission, and distribution sectors of the pipeline industry with a global portfolio of products and services, including advanced isolation, integrated pigging, integrity assessment and repair solutions. With both onshore and offshore applications, TDW offers expansive pipeline maintenance and asset optimization activities. TDW cultivates long-term relationships with pipeline operators that endure throughout the life of a pipeline. To learn more, visit About Apollo Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of March 31, 2025, Apollo had approximately $785 billion of assets under management. To learn more, please visit About SCF Partners Founded in 1989, SCF provides equity capital and strategic growth assistance to build and grow leading energy service, equipment, and technology companies that operate throughout the world. SCF has invested in more than 80 platform companies, made more than 370 additional acquisitions, and developed 18 publicly listed energy service and equipment companies over its history. The firm is headquartered in Houston, Texas, and has offices in Aberdeen and Australia. For more information, please visit
Globe and Mail
2 hours ago
- Globe and Mail
Should You Buy Nio Stock Right Now?
Nio (NYSE: NIO) is reporting an increase in deliveries and vehicle margins. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » *Stock prices used were the afternoon prices of June 6, 2025. The video was published on June 8, 2025. Should you invest $1,000 in Nio right now? Before you buy stock in Nio, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nio wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Toronto Star
7 hours ago
- Toronto Star
Brown & Brown, Inc. enters into agreement to acquire Accession Risk Management Group
DAYTONA BEACH, Fla., June 10, 2025 (GLOBE NEWSWIRE) — J. Scott Penny, chief acquisitions officer of Brown & Brown, Inc. (NYSE: BRO), and John Mina, chief executive officer of Accession Risk Management Group, Inc. ('Accession'), today announced that Brown & Brown has entered into an agreement to acquire RSC Topco, Inc. ('RSC'), the holding company for Accession. The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions and regulatory approvals. Under the terms of the agreement, Brown & Brown will acquire RSC on a cash and debt-free basis at the time of acquisition for a gross purchase price of $9.825 billion. The parties previously submitted filings in respect of the Transaction under the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the waiting period for such filings has already expired.
