Oracle stock holds onto all-time high after cloud business soars
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UPGRADE- Oracle reaches new all-time high above $202 on Thursday.
- Fiscal Q4 earnings show the company welcoming strong cloud growth.
- MultiCloud database revenue from Amazon, Google and Azure grew 115% QoQ.
- Mutliple Wall Street analysts raise price target to $220.
Oracle (ORCL) stock has bested the naysayers on Thursday by reaching a new all-time high above $200 per share. The database software company was boosted after reporting its fiscal Q4 earnings late Wednesday. The market was generally surprised by how much growth Oracle is seeing in its cloud business, especially as it relates to artificial intelligence workloads.
The market got off to an uneven start on Thursday as multiple news agencies reported that US officials were worried that Israel was imminently planning to strike Iran despite the US carrying on peace talks with the latter country. Additionally, Boeing (BA) shares plunged after a 787-8 Dreamliner crashed in India, and Initial Jobless Claims in the US for last week came in above consensus.
However, Producer Price Index (PPI) data showed a lower inflation print than many expected, and this raised the prospect of an earlier rate cut by the Federal Reserve (Fed). The inflation print caused Treasury yields to fall and generally boosted equities.
Furthermore, US President Donald Trump rattled investors after he said he would send letters to countries in order to set unilateral tariff rates ahead of the July 9 deadline. But the NASDAQ, S&P 500 and Dow Jones Industrial Average still all closed up between 0.2% and 0.4% on Thursday
Oracle stock news
Oracle's fiscal fourth-quarter results were only a slight beat. Adjusted EPS of $1.70 was 3% higher than the Wall Street consensus, while revenue of $15.9 billion came in for a 2% beat, rising 11% from a year ago.
But the excitement was under the hood. Oracle's Cloud Infrastructure segment reported revenues up 52% over the previous year period, and its specific Cloud segment saw revenue rise 27% YoY. Oracle's Fusion Cloud ERP segment reported 22% YoY revenue growth.
Wall Street was impressed by Oracle's large backlog of demand with remaining performance obligations surging 41% to $138 billion.
"MultiCloud database revenue from Amazon, Google and Azure grew 115% from Q3 to Q4," said Oracle Chairman and CTO, Larry Ellison. "We currently have 23 MultiCloud datacenters live, with 47 more being built over the next 12 months. We expect triple-digit MultiCloud revenue growth to continue in FY26."
Bank of America Securities raised its price target from $156 to $220, while Jefferies raised its target by $20 to $220 as well.
Oracle stock forecast
Oracle stock broke past the December 9 previous all-time high at $198.31 to reach a new all-time high of $202.49 on Thursday, before closing just below $200.
ORCL daily stock chart
RCL momentum has been so hurried that the 50-day Simple Moving Average (SMA) is stuck all the way back near $150. With the Relative Strength Index (RSI) showing an alarmingly high reading of 85, it wouldn't be surprising if investors decided to take profits off the table. But with analysts targeting $220, ORCL is unlikely to fall much further than the late 2024 resistance in the $190s.
After a short consolidation, expect ORCL to continue moving higher as the market begins to attach a hyperscaler multiple to it. Baring macro events from getting in the way, Oracle shares have at least 10% more gains in the tank.
- Oracle reaches new all-time high above $202 on Thursday.
- Fiscal Q4 earnings show the company welcoming strong cloud growth.
- MultiCloud database revenue from Amazon, Google and Azure grew 115% QoQ.
- Mutliple Wall Street analysts raise price target to $220.
Oracle (ORCL) stock has bested the naysayers on Thursday by reaching a new all-time high above $200 per share. The database software company was boosted after reporting its fiscal Q4 earnings late Wednesday. The market was generally surprised by how much growth Oracle is seeing in its cloud business, especially as it relates to artificial intelligence workloads.
The market got off to an uneven start on Thursday as multiple news agencies reported that US officials were worried that Israel was imminently planning to strike Iran despite the US carrying on peace talks with the latter country. Additionally, Boeing (BA) shares plunged after a 787-8 Dreamliner crashed in India, and Initial Jobless Claims in the US for last week came in above consensus.
However, Producer Price Index (PPI) data showed a lower inflation print than many expected, and this raised the prospect of an earlier rate cut by the Federal Reserve (Fed). The inflation print caused Treasury yields to fall and generally boosted equities.
Furthermore, US President Donald Trump rattled investors after he said he would send letters to countries in order to set unilateral tariff rates ahead of the July 9 deadline. But the NASDAQ, S&P 500 and Dow Jones Industrial Average still all closed up between 0.2% and 0.4% on Thursday
Oracle stock news
Oracle's fiscal fourth-quarter results were only a slight beat. Adjusted EPS of $1.70 was 3% higher than the Wall Street consensus, while revenue of $15.9 billion came in for a 2% beat, rising 11% from a year ago.
But the excitement was under the hood. Oracle's Cloud Infrastructure segment reported revenues up 52% over the previous year period, and its specific Cloud segment saw revenue rise 27% YoY. Oracle's Fusion Cloud ERP segment reported 22% YoY revenue growth.
Wall Street was impressed by Oracle's large backlog of demand with remaining performance obligations surging 41% to $138 billion.
"MultiCloud database revenue from Amazon, Google and Azure grew 115% from Q3 to Q4," said Oracle Chairman and CTO, Larry Ellison. "We currently have 23 MultiCloud datacenters live, with 47 more being built over the next 12 months. We expect triple-digit MultiCloud revenue growth to continue in FY26."
Bank of America Securities raised its price target from $156 to $220, while Jefferies raised its target by $20 to $220 as well.
Oracle stock forecast
Oracle stock broke past the December 9 previous all-time high at $198.31 to reach a new all-time high of $202.49 on Thursday, before closing just below $200.
ORCL daily stock chart
RCL momentum has been so hurried that the 50-day Simple Moving Average (SMA) is stuck all the way back near $150. With the Relative Strength Index (RSI) showing an alarmingly high reading of 85, it wouldn't be surprising if investors decided to take profits off the table. But with analysts targeting $220, ORCL is unlikely to fall much further than the late 2024 resistance in the $190s.
After a short consolidation, expect ORCL to continue moving higher as the market begins to attach a hyperscaler multiple to it. Baring macro events from getting in the way, Oracle shares have at least 10% more gains in the tank.
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