Should You Sell Oracle Stock Ahead Of Its Upcoming Earnings?

Core Insights - Oracle's upcoming earnings report is anticipated to show earnings of $1.64 per share on revenue of $15.58 billion, reflecting growth from the previous year [3] - The company has a historical trend of negative one-day returns following earnings announcements, with a 60% decline rate and a median drop of 4.4% [2][8] - Oracle's market capitalization stands at $471 billion, with $56 billion in revenue and a net profit of $12 billion over the past twelve months [4] Historical Performance - Over the last five years, Oracle has recorded 20 earnings data points, with 8 positive and 12 negative one-day returns, resulting in positive returns approximately 40% of the time [8] - The median of positive returns is 11%, while the median of negative returns is -4.4% [8] - The correlation between one-day and five-day post-earnings returns can inform trading strategies, with traders potentially positioning themselves based on these correlations [9] Market Context - The anticipated growth in Oracle's earnings is largely attributed to the increasing adoption of its cloud services, particularly in generative AI workloads [3] - The Trefis High Quality portfolio, which includes Oracle, has outperformed the S&P 500 with returns exceeding 91% since its inception, offering a less volatile investment alternative [4][11]