Oracle (ORCL) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Oracle (ORCL 0.07%) has been a steady performer on the stock market over the past five years, delivering respectable gains of 230% to investors and outperforming the Nasdaq Composite's 143% jump by a handsome margin. But the technology giant has been under pressure this year.
Demand for artificial intelligence (AI) hardware has jumped substantially in the past couple of years. Technology giants in the U.S. and abroad, along with governments around the globe, are pouring billions of dollars into developing powerful large language models (LLMs), which can then be deployed to create useful applications to enhance productivity.
Oracle shows strong cloud growth but high capex limits free cash flow. One can hold the stock if invested or wait for revenue acceleration from the $130B backlog.
Last year, some of the biggest technology companies all made the same decision: They announced stock splits. From Nvidia to Broadcom and Super Micro Computer, the market was ripe with stock-split activity.
Oracle's NYSE: ORCL Q1 2025 stock price pullback is an opportunity to buy this AI play at a deep discount. Down 25% from its highs, the stock trades at a value relative to its peers, earnings outlook, capital return, analysts' forecast and technical price action.
Oracle's (ORCL -2.95%) stock price rallied 85% over the past two years, outperforming the S&P 500's 45% comparable gain and boosting its market capitalization to $420 billion. That rally was fueled by the growth of its cloud and AI businesses.
Top congressional staffers met with Oracle on Tuesday to talk about TikTok, which faces a ban in the United States unless it is sold to a non-Chinese owner by early April.
News that Oracle (ORCL -2.84%) might get involved in the controversy-laden saga that is TikTok sent the American company's shares down on Tuesday. Oracle's share price fell by 3% on the day, a steeper tumble than the 1.1% slip of the S&P 500 (^GSPC -1.07%).
Oracle said on Wednesday it would provide Singapore's defense technology arm with "isolated" cloud computing and AI services, in the company's first such deal in Southeast Asia.
One of the deals being considered to keep TikTok operating in the U.S. reportedly involves Oracle taking a small stake in the company and working with U.S. buyers to ensure that no user data would be accessible to the Chinese government.
A "Project Texas 2.0" is reportedly in the works to avert a TikTok ban. The post Oracle Stock Gains Amid TikTok Deal Chatter.