‘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.
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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.
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