Oracle Cloud Selected by CMS for Key Migration
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy ORCL?
Source: Benzinga
- CMS Cloud Migration Selection: The Centers for Medicare & Medicaid Services (CMS) has chosen to migrate select on-premises workloads to Oracle Cloud Infrastructure (OCI) as part of an IT modernization effort, which is expected to enhance system performance and scalability while achieving cost efficiencies.
- Technical Support and Migration Planning: Oracle will provide migration planning and technical support to CMS during the transition to the new environment, which not only strengthens Oracle's competitiveness in the federal cloud market but may also attract more government clients.
- Stock Price Volatility and Market Reaction: Although the initial announcement boosted Oracle's stock price, it currently trades below both the 20-day and 100-day simple moving averages, indicating long-term weakness, with a 9.37% decline over the past 12 months.
- Analyst Ratings and Targets: Oracle's stock carries a 'Buy' rating with an average price target of $297.36, and despite the current low stock price, analysts remain optimistic about its growth prospects, suggesting an 87% upside potential worth noting.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 156.480
Low
180.00
Averages
309.59
High
400.00
Current: 156.480
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technical Support and Migration Planning: Oracle will provide migration planning and technical support to CMS during the transition to the new environment, which not only strengthens Oracle's competitiveness in the federal cloud market but may also attract more government clients.
- Stock Price Volatility and Market Reaction: Although the initial announcement boosted Oracle's stock price, it currently trades below both the 20-day and 100-day simple moving averages, indicating long-term weakness, with a 9.37% decline over the past 12 months.
- Analyst Ratings and Targets: Oracle's stock carries a 'Buy' rating with an average price target of $297.36, and despite the current low stock price, analysts remain optimistic about its growth prospects, suggesting an 87% upside potential worth noting.
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- Cloud One Program: This initiative offers Department of Defense customers the opportunity to leverage OCI, ensuring mission owners can meet boundary protection needs while enhancing overall security through the Secure Cloud Computing Architecture.
- AI Database Utilization: The task order enables users to utilize Oracle AI Database 26ai on OCI to securely combine organization-specific and public information, generating sophisticated answers and autonomously executing actions during agentic AI workflows.
- Project Timeline: Work under this task order will be performed at contractor-designated facilities throughout the United States and is scheduled to run through December 7, 2028, indicating Oracle's long-term collaboration potential within the Defense Information Systems Network.
See More
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- CMS Cloud Migration Selection: The Centers for Medicare & Medicaid Services (CMS) has chosen to migrate select on-premises workloads to Oracle Cloud Infrastructure (OCI) as part of an IT modernization effort, which is expected to enhance system performance and scalability while achieving cost efficiencies.
- Technical Support and Migration Planning: Oracle will provide migration planning and technical support to CMS during the transition to the new environment, which not only strengthens Oracle's competitiveness in the federal cloud market but may also attract more government clients.
- Stock Price Volatility and Market Reaction: Although the initial announcement boosted Oracle's stock price, it currently trades below both the 20-day and 100-day simple moving averages, indicating long-term weakness, with a 9.37% decline over the past 12 months.
- Analyst Ratings and Targets: Oracle's stock carries a 'Buy' rating with an average price target of $297.36, and despite the current low stock price, analysts remain optimistic about its growth prospects, suggesting an 87% upside potential worth noting.
See More
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- Logistics Stocks Hit: C.H. Robinson (CHRW) fell over 14% on Thursday due to AI fears, with a total decline exceeding 10% over the week, indicating a pessimistic outlook for the logistics sector's future.
- Brokerage Decline: Charles Schwab's stock dropped around 9% since Tuesday, with the CEO expressing disappointment over the sell-off during a Bloomberg TV interview, despite the company's efforts to leverage AI for client services.
- Real Estate Pressure: CBRE's shares plunged approximately 15.2% over the past week, primarily due to its latest earnings report missing expectations, reflecting market concerns about its profitability.
- Unity Software Plummets: Unity's stock dropped over 26% following its latest earnings release, with Q4 results beating expectations but disappointing first-quarter revenue guidance, leading analysts to believe the company needs time to restore investor confidence.
See More
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- Inflation Data Impact: The U.S. January Consumer Price Index rose by 2.4% year-over-year, below the expected 2.5%, marking the smallest increase in seven months, which may prompt the Fed to continue cutting rates, thus providing support for the stock market and alleviating concerns over rate hikes.
- Strong Software Stock Performance: Software stocks like Crowdstrike Holdings and ServiceNow rose over 4% and 3%, respectively, lifting the broader market and indicating a rebound in investor confidence in tech stocks, particularly amid rapid advancements in AI technology.
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- Market Share Shift: Arista Networks CEO Ullal indicated that Nvidia's market share has dropped from 99% to 20%-25% over the past year, suggesting a significant increase in AMD's acceptance as a preferred accelerator, which could threaten Nvidia's dominance.
- Stock Movements: Nvidia's shares fell nearly 3% while AMD's rose close to 1%, reflecting differing investor expectations regarding the future prospects of both companies, particularly amid intensifying competition in the AI processor market.
- Reduced Technology Dependency: Nvidia is gradually decreasing its reliance on Arista's technology as it has developed its own networking solutions to connect AI chips, which may lead to a decline in demand for Arista's offerings and negatively impact its stock performance.
- Industry Dynamics: Despite Nvidia holding approximately 90% of the AI chip market, increasing competition from AMD and Google could affect Nvidia's long-term growth potential, especially in the rapidly evolving AI infrastructure landscape.
See More
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- Market Share Shift: Arista Networks CEO Ullal indicated that Nvidia's share in their deployments has dropped from 99% to 20%-25% over the past year, highlighting AMD's rise as a preferred accelerator, which could impact Nvidia's market dominance.
- Stock Price Movements: Following this news, Nvidia's stock fell nearly 3% while AMD's rose close to 1%, reflecting investor sensitivity to market dynamics despite the modest fluctuations.
- Technological Dependency: Nvidia's development of its own networking technology has reduced its reliance on Arista, leading to a 10% drop in Arista's stock over two days, indicating challenges in its role within AI infrastructure.
- Future Outlook: Although Arista's stock rebounded 19% over the past year, the fact that it lost more than half its value in 2023 suggests the company needs to reassess its partnership with Nvidia to adapt to market changes.
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