Cloud Infrastructure Provider Oracle Rallies On Earnings Beat

One of the lesser talked out tech companies rallied on Tuesday, leading the market higher after reporting better than expected third fiscal quarter earnings. The stock we’re referring to is Oracle, a cloud services platform and the third largest software company in the world by revenue. Shares jumped 11.8% higher in Tuesday’s session, reaching a new record high of $127.54 a share.

The prior record for Oracle was set back in September 2023, and Tuesday’s gain was the largest single day percentage gain since December 10, 2021, when shares closed 15.6% higher.

Oracle reported revenue of $13.28 billion, which was shy of analyst expectations for $13.3 billion. However, adjusted earnings per share were $1.41, exceeding the $1.38 per share that analysts were expecting.

Adding to the positive sentiment for the stock was an increase from $135 to $150 in the price target for Oracle from Deutsche Bank analysts. The analysts reiterated their buy rating on the stock, highlighting the demand for Oracles cloud infrastructure business.

Analysts at UBS also lifted their price target on the stock from $130 to $150 a share while reiterating a buy rating on the stock. In a note to investors the analysts said they are “encouraged by the top-line turnaround, OCI growth, AI backlog numbers and by the prospect that the big core database business might benefit in 2024/2025 from an AI-driven cloud migration lift.”

Analysts at Bernstein Research were most bullish on the stock’s potential, lifting their price target from $147 to $159 a share, while also reiterating an equivalent buy rating. They were also positive over the growth seen at Oracle, and felt encouraged by management’s comments that supply continues to outstrip strong demand.