Oracle (ORCL) came out with quarterly earnings of $2.26 per share, beating the Zacks Consensus Estimate of $1.63 per share. This compares to earnings of $1.47 per share a year ago.
Rishi Jaluria, RBC Capital Markets Analyst, joins 'Closing Bell Overtime' to talk Oracle quarterly results.
Oracle missed its quarterly revenue estimates, causing its shares to fall by more than 6% after hours. Despite the miss, Oracle still saw 14% year-over-year revenue growth in the quarter ending November 30.
While the company beat on EPS and increased its AI deal pipeline, concerns over Oracle's financing strategy remain
Oracle Corp (NYSE:ORCL, XETRA:ORC) shares fell about 6% afterhours as it reported a slight revenue miss for the fiscal second quarter. Oracle reported revenue growth of 14% at $16.1 billion, at the low end of its guidance range of 14% to 16%.
Oracle's earnings report lands during a very volatile stretch for the stock, as investors question whether the company's AI investments are justified. The company raised $18 billion of debt in September.
ORCL stock has surged 10% in the past week and now trades at $221.53, but the rally has pushed the valuation to levels that look stretched relative to the company's fundamentals and long-term growth profile. Our analysis suggests that it may be prudent to reduce exposure, as a more reasonable price of around $156 appears achievable under normalized valuation multiples.
Overspending concerns surround the A.I. narrative plagued the trade in recent weeks, and Oracle (ORCL) was seen as a posterchild for that risk.
CNBC's “Closing Bell Overtime” team discusses Oracle's upcoming earnings report and what may be next from the Fed with Guy Adami, "Fast Money" trader and co-founder of RiskReversal Media.
Investors are hoping Oracle stock regains its bullish momentum with the company set to report results for its fiscal second quarter after-market hours on Wednesday, November 10.
Oracle Corp (NYSE:ORCL, XETRA:ORC) is seeing a modest improvement in technology spending trends heading into its fiscal second quarter earnings report, according to Jefferies analysts who maintained a ‘Buy' rating and $400 price target on the company. The firm's price target implies significant upside from current levels of $222, and shares have also added 33% this year.
Oracle's stock is coming off its worst month since 2001 due to Wall Street's concern about the company's debt obligations tied to artificial intelligence. In the company's earnings report on Wednesday, investors will be listening closely for signs that AI demand justifies Oracle's aggressive buildout plans.