An analyst downgraded the stock to sell, citing "gen AI hype" and recent uninspiring" results. The post Oracle Downgraded To Sell On 'Surprisingly Uninspiring' Results After AI-Fueled Rally appeared first on Investor's Business Daily.
A big cap rival to Oracle in the supply chain software arena has been on a strong run amid surging earnings. It is eyeing a potential entry.
Evaluate Oracle's (ORCL) reliance on international revenue to better understand the company's financial stability, growth prospects and potential stock price performance.
Oracle's Q2 results missed top- and bottom-line estimates, but strong growth in OCI and SaaS segments suggests the miss is an outlier. The Meta deal and partnerships with major AI players indicate sustained demand for Oracle's Cloud Infrastructure, bolstering long-term growth prospects. Despite recent stock decline, Oracle's valuation is attractive with a forward P/E of 31.94x and a projected FY25 EPS of $6.18, suggesting a 13.6% upside.
Oracle (ORCL -1.10%) share prices have had a strong year on the back of renewed interest due to strength in its cloud infrastructure business. However, the stock was falling following its fiscal 2025 second-quarter results after the company missed analyst estimates and offered tempered guidance.
Oracle (ORCL -1.10%) has been a solid performer on the stock market so far this year with impressive gains of 80% as of this writing. But its impressive rally has come to a halt following the release of the company's fiscal 2025 second-quarter results (for the three months ended Nov. 30) on Dec. 9 as its numbers fell shy of Wall Street's expectations.
The NDX tapped new highs but the other indices didn't gather that same strength during a weaker market week. However, Broadcom (AVGO) shined as a huge winner thanks to an earnings rally that sent its stock to its own all-time high.
Recently, Zacks.com users have been paying close attention to Oracle (ORCL). This makes it worthwhile to examine what the stock has in store.
Oracle (ORCL -1.83%) reported quarterly financial results that disappointed stock market investors.
ORCL's Q2 shows weak margins, heavy AI spending and negative cash flow. Despite cloud growth claims, rising costs and tepid guidance signal it's time to exit.
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Oracle's recent Q2 miss on EPS and revenue sparked a sell-off, but the declines were minimal, with EPS missing by just $0.01 and revenue missing by $63.95 million. Oracle remains pivotal to AI development, with cloud infrastructure revenue up 52% and GPU consumption surging 336%, driven by record AI demand and AGI database needs. Oracle's forward revenue and EPS growth outpace the sector median, yet shares trade at only a slight premium, offering strong growth at a reasonable valuation.