Oracle NYSE: ORCL was among the hardest hit during the SaaS AI-disruption fear sell-off, but its bottom is in, and a robust rebound lies ahead. While Oracle is a Software-as-a-Service (SaaS) stock, it is not an SaaS play, having invested heavily in the cloud and AI.
ORCL's surging cloud growth, record $553B backlog and AI push outshine peers, while NOW faces slowing growth and integration risks.
Oracle (NYSE:ORCL | ORCL Price Prediction) has climbed 14.49% to close at $175.06.
Oracle is set to accelerate its Cloud revenue growth through a deepened integration partnership with Amazon Web Services. The Oracle-AWS deal enables enterprise customers to leverage Oracle databases directly with AWS's generative-AI services, reducing integration costs and latency. Oracle's $50B CapEx program and global expansion into more AWS regions position it for persistent re-rating and high-margin Cloud growth.
Oracle stock has crashed more than 50% from its all-time high, yet 28 out of 35 Wall Street analysts still rate it a Buy or Strong Buy with a median price target implying 60% upside. The company is borrowing at a staggering pace -- total debt has ballooned to $149 billion, and credit default swaps on Oracle debt just hit their highest level since 2008.
In the closing of the recent trading day, Oracle (ORCL) stood at $175.06, denoting a -1.84% move from the preceding trading day.
This week has seen some big tech winners. Many of them were big losers not too long ago.
Oracle (NASDAQ: ORCL | ORCL Price Prediction) surged 29.4% in a single week, fueled by AI infrastructure announcements and a massive remaining performance obligation backlog.
Bloom Energy surged on a major expanded deal with Oracle, securing up to 2.8 GW of fuel cell systems. BE guided to 2026 revenues of ~$3.2B (50%+ growth), with Oracle's order supporting potential upside to 2027 revenue of $5.1B. The fuel-cell company already has solid gross margins standing at 32%, with strong operating income and cash flows, unlike other alternative power solutions.
Oracle (NYSE:ORCL | ORCL Price Prediction) has bounced sharply off its lows, but a debt load of over $124 billion, revenue concentration in a single customer, and a valuation demanding near-perfection make this an uncomfortable entry point for new buyers.
Shares of tech giant Oracle Corp NYSE: ORCL are currently trading just above $160, having bounced hard in the past couple of sessions. After announcing massive layoffs at the end of March, the stock initially moved higher before being dragged lower amid the broader equity selloff tied to escalating tensions in the Middle East.
Recently, Zacks.com users have been paying close attention to Oracle (ORCL). This makes it worthwhile to examine what the stock has in store.