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Business Insider
a day ago
- Business
- Business Insider
Analyst Says ‘There's Room for More,' as Oracle Stock (ORCL) Jumps 108%
Oracle (ORCL) has been on a remarkable run over the past four months. Since hitting a 52-week low of $118.86 in April, the stock has soared 108%, setting fresh highs on an almost daily basis. The rally is being driven by Oracle's exceptional momentum in cloud services and AI-powered solutions, supported by strong enterprise demand. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. More importantly, even after such a surge, ORCL still doesn't appear overvalued given its revitalized potential for accelerated earnings growth. That's why I remain bullish on the stock. Cloud Infrastructure: The Engine of Oracle's Growth Oracle's cloud infrastructure business, OCI, is firing on all cylinders, and it's no surprise why. In their latest earnings call, CEO Safra Catz highlighted that OCI revenue jumped 52% year-over-year to $3 billion, with consumption revenue soaring 62%. That's on top of 42% growth the previous year! Enterprises are clearly flocking to Oracle's cloud for its cost efficiency and flexibility, especially for AI workloads. For example, Chinese retailer Temu, owned by PDD Holdings Inc. (PDD), recently moved its infrastructure to OCI, and Oracle's partnership with OpenAI's Stargate project underscores its role in the development of enormous AI data centers. With $138 billion in remaining performance obligations (RPO), up 41% from last year, Oracle is locked in for explosive growth. I believe this success can be attributed to Oracle's engineering decisions, which prioritize enterprise needs and offer lower costs and deployment flexibility compared to other hyperscalers. Catz noted that OCI's non-cancelable bookings give them confidence for over 70% revenue growth in fiscal 2026. That's a signal that Oracle's cloud infrastructure is becoming a go-to for businesses scaling AI and database workloads, setting the stage for sustained momentum. AI-Powered Database Solutions: A Game-Changer Another massive driver of Oracle's rally is its AI-integrated database solutions, particularly the Oracle Autonomous Database. In the most recent fiscal Q4-2025, cloud database services revenue grew 31% to an annualized $2.6 billion, with Autonomous Database consumption revenue up a whopping 47%. Why does this matter? Enterprises need robust databases to handle AI's massive datasets, and Oracle's offering stands out with built-in security and flexibility across OCI, private clouds, or partner clouds like Azure and Google. Larry Ellison, Oracle's Chairman, emphasized that multi-cloud database revenue from partners like Amazon and Google grew 115% from Q3 to Q4. This is the story of Oracle becoming the backbone for AI-driven enterprises. The company's 23 live cloud regions for database services, with 47 more planned, show it's scaling fast to meet demand. I don't think Ellison's bold claim that Oracle will be the 'number one cloud database company' is just bravado, but rather it's backed by a 56% surge in cloud RPO, signaling a pipeline stuffed with future revenue. Oracle's database prowess is a key reason this stock keeps climbing. Oracl'es Valuation is Not as Pricey as Investors Think With ORCL more than doubling from its lows and now trading at about 37x forward earnings, some folks might think it's getting frothy. But let's unpack this. Oracle's profitability is soaring, thanks to AI tailwinds. Last quarter, adjusted EPS hit $1.70, beating estimates by $0.06, and full-year operating income grew 9% to $25 billion. The gross profit margin was also at a stellar 71.1%, reflecting Oracle's ability to monetize its AI and cloud offerings efficiently, especially as cloud services now account for 77% of total revenue. The AI boom is pushing demand that's 'almost insatiable,' as Ellison put it, with Oracle welcoming unprecedented orders for cloud capacity. This sets up double-digit EPS growth potential, especially with fiscal 2026 revenue guidance at over $67 billion, a 16% jump. So even at today's somewhat elevated multiple, ORCL isn't really overvalued either when you consider the high-margin, high-growth AI environment and its key role in it. Is Oracle a Buy, Hold, or Sell? There are 34 analysts offering price targets on ORCL stock via TipRanks, with a fairly bullish consensus. Today, the stock carries a Moderate Buy consensus rating based on 24 Buy and 10 Hold ratings over the past three months. Notably, not a single analyst rates the stock a Sell. ORCL's average stock price target of $249.03 indicates Wall Street expects sideways trade from ORCL over the next twelve months. Oracle's Rally is Sustainable in the Cloud Era All in all, I believe Oracle's run isn't just a short-term hype cycle, but the result of real momentum in cloud infrastructure and AI-powered databases, backed by sticky enterprise demand and long-term contracts. The company is scaling fast, securing huge RPO, and expanding its multi-cloud reach, all while sustaining strong profitability. At roughly 37x forward earnings, ORCL may look pricey at first glance, but the growth trajectory tells a different story. With accelerating adoption across AI workloads and unmatched database capabilities, I see Oracle as one of the most compelling plays in this new cloud era, and so I remain Bullish on its future.
Yahoo
30-07-2025
- Business
- Yahoo
1 Supercharged Artificial Intelligence (AI) Stock to Buy Before It Soars to $1 Trillion by 2028, According to Wall Street
Key Points Oracle's cloud, database, and enterprise software products are in use at 98% of the Fortune 500 companies. Many of its customers are rapidly adopting generative AI, which is helping drive the company's robust growth. There's a clear path to $1 trillion within three years thanks to Oracle's fundamental position in the IT ecosystem. 10 stocks we like better than Oracle › The impact of artificial intelligence (AI) on the technology landscape has been incontrovertible over the past few years, but the transformation is ongoing. Indeed, a review of the world's most valuable companies by market cap offers up compelling insight: Eight of the top 10 companies boast membership in the $1 trillion club, and they all have unmistakable ties to AI. Some of the most important players in the semiconductor and information technology (IT) spaces have taken up residence on the list. For example, Nvidia pioneered the graphics processing units (GPUs) that power the technology, Taiwan Semiconductor Manufacturing produces roughly 90% of the world's most advanced semiconductors, and Broadcom is a critical part of the AI ecosystem, with 99% of all internet traffic passing through its equipment. With a market cap of $705 billion, it seems like it's only a matter of time before Oracle (NYSE: ORCL) secures its membership in this elite fraternity. The company's growth is accelerating, and management's long-term outlook provides compelling evidence that AI will fuel robust growth for years to come. A trusted technology partner Oracle notes that roughly 98% of Global Fortune 500 companies are among its customers, using a combination of its database, cloud, and enterprise software products and services. This gives Oracle a captive audience for its expanding suite of AI and cloud solutions. This has helped propel the company's recent growth spurt. During Oracle's fiscal 2025 fourth quarter (ended May 31), revenue grew 11% year over year to $15.9 billion, while adjusted earnings per share (EPS) of $1.70 grew 4%. Both numbers easily surpassed Wall Street's consensus estimates, which called for revenue of $15.6 billion and adjusted EPS of $1.64. CEO Safra Catz noted that the company had reached a "tipping point," with revenue growth accelerating, "and it's only going up from here." She also said she expects cloud revenue for the coming year to accelerate to 40% in fiscal 2026, up from 24%, and far outpace the growth of its larger cloud rivals. This is driving the expansion of the company's remaining performance obligation (RPO) -- or contractual obligations not yet included in revenue -- which surged 41% year over year to $138 billion. The fact that RPO is growing faster than revenue provides a glimpse into the future. Perhaps even more telling is Catz's statement that "RPO is likely to grow more than 100% in fiscal year 2026." At the same time, Oracle expects its revenue to top $67 billion next fiscal year, which would represent 16% growth in constant currency. The clear path to $1 trillion Oracle has a sterling reputation for helping its clients pick the appropriate cloud and AI solutions for their needs. This puts the company in the pole position to benefit from the growing adoption of generative AI. Given the sheer magnitude of the opportunity, this transition will take years, if not decades, to unfold. According to Wall Street, Oracle is expected to generate revenue of $66.8 billion in its fiscal 2026 (which began June 1), giving it a forward price-to-sales (P/S) ratio of about 11. Assuming its P/S remains constant, Oracle would need to generate revenue of approximately $95 billion annually to support a $1 trillion market cap. Analysts are forecasting revenue growth of nearly 18% annually over the coming three years. If the company achieves these targets, Oracle could achieve a $1 trillion market cap by 2028. Wall Street's forecast appears to be in lockstep with management's long-term outlook, which is guiding for revenue of at least $104 billion by fiscal 2029. Estimates regarding the market value of generative AI are all over the map, but bear watching. Big Four accounting firm PwC estimates the market could be worth as much as $15.7 trillion annually by 2030, which helps illustrate the magnitude of the opportunity. If Oracle can carve out just a sliver of that windfall by serving up appropriate AI solutions to its customers, its impressive growth will continue, helping Oracle join the fraternity of trillionaires sooner rather than later. Should you buy stock in Oracle right now? Before you buy stock in Oracle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Oracle 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 $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% 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 July 29, 2025 Danny Vena has positions in Broadcom and Nvidia. The Motley Fool has positions in and recommends Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. 1 Supercharged Artificial Intelligence (AI) Stock to Buy Before It Soars to $1 Trillion by 2028, According to Wall Street was originally published by The Motley Fool Sign in to access your portfolio
Miami Herald
02-07-2025
- Business
- Miami Herald
Oracle CEO sends blunt 2-word message on its business
How did renting computational power and storage - and making maintaining someone's services easier via the internet - become "running things in the cloud"? The person who coined that term was a marketing genius, but tracing the origin of the term is difficult. Notwithstanding the nonsensical term, switching to the cloud became easier for most companies than setting up and maintaining network infrastructure themselves. Switching from an on-premises server to one "in the cloud" has some upsides. If you don't know how many servers you need and how powerful they have to be, it is much easier to use the cloud. Related: Analyst sends Alphabet warning amid search market shakeup As you develop your service and get more users, you can scale up and add more CPU power or storage with just a couple of clicks, or even automatically. And you don't have to think about power outages and replacing broken hardware, either. There are downsides, though, including data security concerns, dependence on a good internet connection, and the fact that some setups, if they automatically scale, can leave you with a very large bill, due to an unexpected surge in demand for your services. Big businesses have large and complex databases and need to run somewhere, too. If the company uses Oracle's database solution, it is much easier to use Oracle Cloud Infrastructure (OCI). Perhaps this is the main driver of Oracle's growth in the cloud computing space. Oracle Corporation (ORCL) offers a special service it calls MultiCloud. This service makes connecting different cloud infrastructures easier and enables you to run OCI Oracle Database services in any cloud. That makes mixing cloud providers easier. You can combine Google Cloud and/or Amazon Web Services with Oracle's offerings. Oracle reported its fiscal 2025 Q4 earnings results on June 11. During the earnings call, CEO Safra Catz said, "Our infrastructure business was the next area to move to the cloud. We made engineering decisions that were much different from the other hyperscalers and that were better suited to the needs of enterprise customers, resulting in lower costs to them and giving them deployment flexibility." Related: Analysts raise Micron stock price target, send warning Catz added that she expects OCI revenue to grow over 70% this current year. Other Oracle earnings report highlights included: Total revenue was $15.9 billion, up 11% earnings per share of $1.19 compared to $1.11 in Q4 fiscal 2024. Cloud revenue of $6.7 billion, up 27% YoY. GAAP net income was $3.4 billion, up 9% YoY. "MultiCloud database revenue from Amazon, Google, and Azure grew 115% from Q3 to Q4," said Oracle Chairman and CTO Larry Ellison. He noted that the company has 23 MultiCloud datacenters, and 47 more will be built within a year. Triple-digit MultiCloud revenue growth is expected to continue in fiscal year 2026, added Ellison. Oracle submitted a filing to the SEC on June 30. In it, Catz offered the following message, including two critical words that conveyed confidence in the company's performance. "Oracle is off to a strong start in [fiscal year 2026]," she said. "Our MultiCloud database revenue continues to grow at over 100%, and we signed multiple large cloud services agreements, including one that is expected to contribute more than $30 billion in annual revenue starting in [fiscal year 2028]," Catz added. The company revealed in June that AMD Instinct MI355X GPUs will be available on OCI. These offerings are expected to provide more than two times better price-performance for large-scale AI training and inference workloads than the previous generation. More Tech Stocks: Amazon tries to make AI great again (or maybe for the first time)Veteran portfolio manager raises eyebrows with latest Meta Platforms moveGoogle plans major AI shift after Meta's surprising $14 billion move Yet counting on AI isn't enough. The company also shared in June that it will launch something that is a bit of an oxymoron: an air-gapped cloud offering. As noted previously, the main problem with the cloud is data security, and not every organization can allow its data to be accessible via the internet. The company is calling its new offering Oracle Compute Cloud@Customer Isolated. With a target audience of governments and regulated industries, it is a sovereign compute cloud service that can be disconnected from the internet. According to the company, the service can be deployed in a single rack and scaled up as needed. It is expected to be available globally later this year. It's almost a bit humorous that "the cloud" can be repackaged as an on-premises system, even when handled by a third party. But since Oracle seems to be successfully differentiating itself with its special offerings, perhaps the air-gapped cloud will be a hit, much like the MultiCloud. Related: Microsoft makes huge change to Windows The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
01-07-2025
- Automotive
- Yahoo
Trending tickers: Tesla, Robinhood, Oracle, Apple
Tesla (TSLA) stock dropped almost 1.9% in Monday's session and looked set to continue the selloff with declines of around 5.8% in premarket trade, as investors assessed expectations of dampened vehicle deliveries in its next update. For the second quarter, the electric vehicle (EV) maker is expected to report global deliveries of 395,328, per Bloomberg consensus estimates, down 11% compared to a year ago but significantly higher than the 336,700 delivered in the first quarter. Production across its global plants is expected to come in at 443,321, up compared to last year's 410,800 produced. Sliding deliveries in the second quarter come as the company ramps up sales of its refreshed Model Y SUV, the company's top seller, which was expected to boost sales. Disappointing Q2 sales for Tesla (TSLA) are not exactly a surprise for investors and analysts following the company. Tesla (TSLA) EV registrations (a proxy for sales) in Europe fell 27.9% in May compared to a year ago, per the European Automobile Manufacturers Association (ACEA). Meanwhile, overall EV registrations in the region, which includes the UK and the European Free Trade Association, rose 25% in May, with overall registrations down 0.6%. May's total marks the fifth straight month of declining Tesla (TSLA) sales in the European region. Tesla sales year to date in Europe through May are down 37.1% to 75,196 units. Trading platform Robinhood (HOOD) unveiled a series of new crypto products for US and European consumers on Monday, causing the company's stock to spike 12.8% on Monday. At a presentation in Cannes, company executives announced the launch of US stock and exchange-traded fund (ETF) tokens in the European Union. Tokenised stocks and ETFs are derivatives traded on Robinhood's (HOOD) platform and tracked on a blockchain. They follow the movement of traditional stocks and ETF prices and essentially give EU investors access to 200 new versions of publicly traded US stocks. The move expands the suite of products the company offers and opens up new markets to its customers. The company's stock price looks set to continue its ascent when US markets open later on — it was trading 2.7% higher in premarket at the time of writing. Computing giant Oracle (ORCL) saw it shares rally to all-time highs in Monday's session, up almost 4% following a filing with the US Securities and Exchange Commission showing a cloud deal which is set to bring in $30bn (£21.8bn) annually. The bounty would begin hitting balance sheets in 2028, the filing showed. The company's CEO Safra Catz was set to reveal the deal in a statement to the company on Monday, the filing showed. "Oracle (ORCL) is off to a strong start in FY26," Catz's statement read. "Our MultiCloud database revenue continues to grow at over 100%, and we signed multiple large cloud services agreements including one that is expected to contribute more than $30bn in annual revenue starting in FY28." The deals will not affect the company's 2026 guidance, according to the filing. In its 2025 fiscal year, which ended May 31, Oracle's (ORCL) revenue from its cloud services business amounted to $24.5bn, and total revenue was $57.4bn. Oracle (ORCL) shares jumped as much as 8.6% to an intraday high of $228 on Monday. Last week, Oracle stock cleared a record high of just over $215. Shares have climbed more than 33% over the past month, ahead of the tech-heavy Nasdaq's (^IXIC) 6.4% gain. Apple (AAPL) stock was largely unmoved in premarket trading, following news that the company is weighing powering its voice-activated assistant Siri with AI services from either Anthropic or OpenAI. The move marks an about-turn from its push to develop AI models in-house. People familiar with the discussions said Apple (AAPL) has talked to both companies about training versions of their models that could run Siri, Bloomberg reported. Apple (AAPL) currently powers its AI with what it has called Apple Foundation Models and has not yet made a decision on using a third party, Bloomberg's sources said. For the year-to-date Apple's (AAPL) stock price is down more than 18% so far, in a punishing first-half for the iPhone in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
30-06-2025
- Business
- Time of India
Oracle stock soars after revealing massive $30 billion annual cloud deal in filing
Oracle shares hit an all-time high on Monday, climbing more than 5%, after a surprise revelation in a regulatory filing showed the company had secured a cloud deal expected to generate over $30 billion in annual revenue beginning in fiscal year 2028, as per a CNBC report. Surprise SEC Filing Sends Oracle Shares Soaring The deal, which was outlined in a filing with the Securities and Exchange Commission, is set to be officially announced by Oracle CEO Safra Catz during a company meeting on Monday, according to the report. CEO Safra Catz to Unveil Deal in Monday Meeting The filing revealed that the software company's CEO is expected to say during the meeting that, 'Oracle is off to a strong start in FY26,' adding, 'Our MultiCloud database revenue continues to grow at over 100%, and we signed multiple large cloud services agreements including one that is expected to contribute more than $30 billion in annual revenue starting in FY28,' as quoted by CNBC in its report. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like CVS Is Fuming Over New 87¢ Generic Viagra — See Why Health Alliance by Friday Plans Learn More While, the deals Catz is expected to announce on Monday will not affect the company's 2026 guidance, as mentioned in the filing, reported CNBC. ALSO READ: Shock rift in MAGA? Tucker Carlson and Marjorie Taylor Greene praise Zohran Mamdani as Trump fumes Live Events Oracle Shares Up Over 33% This Year on Cloud and AI Momentum The firm's shares have increased over 33% this year because of cloud growth and the rise of artificial intelligence models, as per the report. In the beginning of this month, Oracle even closed out its best week since 2001 after strong earnings, according to CNBC. Oracle's revenue grew 8.38% over the last twelve months to $57.4 billion, as reported by After the company's financial results were announced, Catz said that Oracle expects revenue growth will be "dramatically higher" for the current fiscal year and also said that the firm's momentum in winning large cloud contracts, including from AI startups, as reported by Investor's Business Daily. ALSO READ: SoFi Tech stock jumps 7% as it relaunches crypto investing and doubles down on blockchain Stifel Upgrades Oracle to 'Buy,' Sets $250 Price Target While, on Sunday, Stifel analyst Brad Reback upgraded his rating on Oracle stock to "buy" from "hold" and set a price target of $250, up from $180, as per the report. Stifel mentioned that "Upgrading To Buy As Cloud Acceleration Appears Sustainable," as per Investor's Business Daily report. Reback explained that the "dramatic step-up" in capital expenditures and growth for Oracle's cloud work backlog supports Oracle's growth expectations, and the company's growing capex costs may weigh on margins in the "near-term," and also added that Oracle's management has shown it can manage those expenses, according to the Investor's Business Daily report. The analyst said that "We believe the combination of sustainable cloud growth and opex (operating expense) discipline should enable Oracle to overcome the revenue mix shift headwinds and post accelerating EPS growth in FY27 and beyond," as quoted in the report. ALSO READ: Pornhub, XNXX in panic? US Supreme Court ruling lets states crack down on online adult content access FAQs Why did Oracle's stock jump so much today? Because a new SEC filing revealed a major cloud deal that could bring in $30 billion a year starting in 2028. What else is fueling investor confidence in Oracle? Recent strong earnings, new AI partnerships, and a wave of big cloud contracts.
