Oracle (ORCL) has shown strong performance in recent quarters, driven by its growing cloud infrastructure and AI initiatives. The company reported a 52% year-over-year increase in cloud infrastructure revenue, with management highlighting "record-level AI demand". Oracle's remaining performance obligations (RPO) reached a record $97 billion, up 49% year-over-year, indicating strong future growth potential.
The company's partnership with NVIDIA to integrate AI tools into its cloud platform further strengthens its position in the AI market. Additionally, Oracle's involvement in the Stargate Initiative, a $100 billion project focused on advancing AI infrastructure, positions it as a key player in the industry.
Oracle's stock is currently trading at $152.26, with a relative strength index (RSI) of 43.92, indicating a neutral position. The MACD line is slightly below the signal line, suggesting a bearish trend, but the gap is narrowing, which could indicate a potential bullish crossover soon.
The stock is trading near the lower end of its Bollinger Bands, suggesting potential undervaluation. The Fibonacci resistance levels at $154.77 and $159.03 could act as significant hurdles, while the pivot level at $147.87 provides strong support.
Recent news highlights Oracle's strategic moves in AI and cloud infrastructure, with analysts maintaining a positive outlook. The stock has received 8 buy ratings and 1 sell rating, with a median price target of $201.00.
Based on the strong fundamentals, positive news sentiment, and technical indicators, Oracle's stock is expected to see an uptrend in the next trading week. The target price is $157.00, with a stop-loss at $150.00.
Recommendation: Buy ORCL with a target price of $157.00 and a stop-loss at $150.00.
The price of ORCL is predicted to go up 3.88%, based on the high correlation periods with GEHC. The similarity of these two price pattern on the periods is 97.57%.
ORCL
GEHC
Year
ORCL Price Forecast($)
Potential Return(%)
2025
190.000
14.240
2026
250.000
50.550
2027
277.000
66.810
2028
280.000
68.610
2029
373.000
124.620
2030
370.000
122.810
Oracle's relational database should be able to post strong growth as customers continue to depend on its quality features, such as data partitioning which brings incomparable load balancing efficiency.
Oracle's autonomous database and IaaS was built with ease of use in mind, which could bring a significant base of first-time Oracle users to the company, strengthening top line results.
Oracle's stake in TikTok Global and cloud services to TikTok's U.S. operations should add a significant boost to Oracle's top line and attract more general use cloud customers.
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