DA Davidson's Gil Luria joins 'Fast Money' to talk the current state of AI as Oracle shares take a hit on valuation concerns.
Oracle (ORCL) reached $236.15 at the closing of the latest trading day, reflecting a -1.94% change compared to its last close.
ORCL's 44.5% YTD surge rides on booming cloud growth, but lofty valuations raise questions on whether it's time to buy or simply hold.
Oracle Corporation is rated a Buy with a $280 price target, suggesting 17% upside driven by AI and cloud momentum. ORCL's cloud revenue surged 28% YoY, fueled by a $300B OpenAI deal and $455B in remaining performance obligations, despite legacy business stagnation. Management projects aggressive cloud infrastructure growth, but execution and conversion risks remain as the company pivots to AI-heavy contracts.
Several companies are racing to claim the coveted $1 trillion market cap, backed by strong fundamentals.
A consortium of around 20 banks is providing a project finance loan of about $18 billion to support the construction of a data center campus linked to Oracle in New Mexico, Bloomberg News reported on Friday.
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Although Synopsys stock fell 6.6% yesterday, its enterprise software counterpart Oracle stock may be the more compelling option.
ORCL's growth is driven by its fast-expanding OCI cloud business, major AI partnerships (including OpenAI/Stargate), and accelerating SaaS adoption. Management guides for 16% total revenue growth and 77% OCI growth in FY2026, supported by strong demand for AI workloads and data center expansion. Risks include customer concentration with OpenAI and reliance on major cloud partnerships, but overall prospects are strong with a projected 27% upside.
Oracle (ORCL) concluded the recent trading session at $248.15, signifying a -3.76% move from its prior day's close.
Oracle (ORCL) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Oracle (ORCL) stock has shown remarkable rallies historically. It jumped about 40% in one day earlier this year on report of a massive surge in AI and cloud-related contract backlogs, signaling explosive future growth.