Oracle (ORCL) Gets Price Target Cut From UBS After Mixed Earnings

Core Viewpoint - Oracle Corporation is highlighted as a significant AI stock for investors, with a recent price target adjustment by UBS analyst Karl Keirstead from $380.00 to $325.00 while maintaining a "Buy" rating, reflecting confidence in the company's substantial $523 billion backlog conversion despite mixed earnings results [1][2]. Financial Performance - Oracle's earnings report on December 11 showed a 13% year-over-year revenue growth and a 66% growth in cloud infrastructure, although these results fell slightly short of investor expectations [3][4]. - The company experienced a $68 billion increase in remaining performance obligations during the quarter, attributed to deals with Meta and Nvidia, indicating strong demand [3]. Investor Sentiment - Investors are currently focused on the conversion of backlog and capital expenditures into revenue, with the total revenue growth of 13% aligning with previous year figures but cloud infrastructure growth of 66% being slightly below expectations [4]. - The guidance for 3Q/Feb cloud revenue growth of 37-41% was also below the analyst's estimate of 42%, contributing to cautious investor sentiment [4].