Oracle Stock Bustin a Move

Adam Eckert | June 12, 2024

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Oracle Corp (NYSE:ORCL) shares are trading higher Wednesday on the heels of the company’s quarterly results. The company also announced partnerships with Google, Microsoft and OpenAI.

What To Know: Oracle reported fourth-quarter revenue of $14.3 billion, missing the consensus estimate of $14.554 billion, according to Benzinga Pro. Oracle reported fourth-quarter adjusted earnings of $1.63 per share, missing average analyst estimates of $1.65 per share.

Oracle highlighted the strength of recent AI demand. The company said it signed over 30 AI sales contracts in the fourth quarter totaling more than $12.5 billion, including one contract with Open AI to train ChatGPT in the Oracle Cloud. Oracle announced a partnership with Microsoft Corp (NASDAQ:MSFT) and OpenAI to provide additional capacity for OpenAI.

“In Q3 and Q4, Oracle signed the largest sales contracts in our history — driven by enormous demand for training AI large language models in the Oracle Cloud,” said Safra Catz, CEO of Oracle.

“These record-level sales drove RPO up 44% to $98 billion. Throughout fiscal year 2025, I expect continued strong AI demand to push Oracle sales and RPO even higher — and result in double-digit revenue growth this fiscal year. I also expect that each successive quarter should grow faster than the previous quarter.”

Oracle also announced a partnership with Alphabet Inc’s (NASDAQ:GOOG) Google Cloud, giving customers the choice to combine Oracle Cloud Infrastructure and Google Cloud technologies to help accelerate application migrations and modernization.

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Analyst Changes: Multiple analysts raised price targets on the stock on Wednesday.

  • Piper Sandler analyst Brent Bracelin maintained Oracle with an Overweight and raised the price target from $140 to $150.
  • B of A Securities analyst Brad Sills maintained Oracle with a Neutral and raised the price target from $144 to $155.
  • Keybanc analyst Jason Ader maintained Oracle with an Overweight and raised the price target from $150 to $165.
  • JPMorgan analyst Mark Murphy maintained Oracle with a Neutral and raised the price target from $105 to $110.
  • Morgan Stanley analyst Keith Weiss maintained Oracle with an Equal-Weight and raised the price target from $115 to $125.
  • Stifel analyst Brad Reback maintained Oracle with a Hold and raised the price target from $120 to $135.

ORCL Price Action: Oracle shares were up 7.52% at $133.19 at the time of publication Wednesday, according to Benzinga Pro.

Photo: Shutterstock.

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