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].

Oracle Corporation (NYSE:ORCL) is one of the Trending AI Stocks on Wall Street. On December 8, Mizuho maintained its “Outperform” rating on the stock with a $400.00 price target. With Oracle’s second-quarter results scheduled for December 10, analyst sees the current stock pullback as a compelling entry point amid long-term AI growth tailwinds. Oracle shares have plunged 34% from their recent peak on September 10th, with analysts attributing the pullback to investor concerns about Oracle’s capital expendi ...

Oracle Corporation (NYSE:ORCL) is one of the Buzzing AI Stocks on Wall Street. On November 26, HSBC maintained its Buy rating on the stock with a $382.00 price target. The rating affirmation reflects optimism in Oracle’s execution and backlog visibility, but flags the company’s flexibility in finding large-scale data center buildouts. According to the firm, Oracle hasn’t yet communicated its specific funding approach for building out infrastructure needs, even though there are plenty on the horizon. Howev ...

Oracle Corporation (NYSE:ORCL) is one of the AI Stocks Making Headlines on Wall Street. On November 25, DA Davidson lowered its price target on the stock to $200.00 from $300.00 while maintaining a “Neutral” rating. The firm raised concerns on an inflated OpenAI-related backlog and rising credit risks, citing them as key overhangs on shares. Analysts noted that their concerns rose as soon as they saw that Oracle’s backlog surge was almost entirely driven by OpenAI, despite Oracle initially implying multip ...

Oracle Corporation (NYSE:ORCL) is one of th AI Stocks on the Market’s Radar. On November 26, Deutsche Bank reiterated its Buy rating on the stock with a price target of $375.00. The firm is constructive on Oracle, stating that it acknowledges risk but also believes that the market isn’t fully appreciating the company’s OpenAI exposure. Oracle’s share prices recently experienced a setback amid concerns related to AI capacity commitments and capital expenditure plans, particularly as it is related to OpenAI ...

Core Viewpoint - Oracle Corporation is recognized as a significant player in the AI sector, with Baird initiating coverage with an "Outperform" rating and a price target of $365, emphasizing its strategic positioning in AI [1][2]. Group 1: AI Positioning - Oracle is well-positioned to benefit from the increasing investment in AI infrastructure and the convergence of AI, data, and emerging use cases [2]. - The company's extensive software offerings provide investors with exposure across the broader computing ecosystem, enhancing its attractiveness in the AI market [2]. Group 2: Revenue and Growth Potential - The combination of Oracle's resources, including scaled infrastructure, database, networking, and applications, is expected to support a premium valuation and drive share prices higher [3]. - The shift towards cloud computing is projected to accelerate Oracle's revenue growth to over 20% [3]. - Core drivers of SaaS applications and infrastructure spending are anticipated to support several years of above-average growth, with operating margins remaining around 40-45% despite increased investment [4].

Core Insights - Oracle Corporation is recognized as a trending AI stock, with a price target increase from $270 to $370 by Melius analyst Ben Reitzes, maintaining a Buy rating [1][3] - The anticipated long-term revenue growth for Oracle is primarily driven by a surge in AI inferencing capabilities, leading to an expansion of its valuation multiple [1][3] - Despite the positive outlook, Oracle's free cash flow has turned negative due to heavy capital expenditures, which may impact its financials for a while [2][3] Financial Performance - The new price target reflects a 37% increase, indicating strong confidence in Oracle's revenue growth potential [3] - The expansion of Oracle's valuation multiple by 4 turns is a response to the expected higher growth rates [3] - The negative free cash flow is a concern, but it is not seen as an immediate issue for the company's growth strategy [3] Industry Context - The capital expenditure trends are viewed positively for other companies in the AI sector, such as Nvidia, Broadcom, AMD, and Arista Networks, which have exposure to Oracle [3] - Overall AI cloud trends are expected to benefit major players like Microsoft and Google, indicating a broader positive sentiment in the AI industry [3]