Why Oracle’s stock price growth is just beginning News ad

Oracle New York Stock Exchange: ORCL The Q2 2025 earnings report proves why this company’s share price rally is far from over. The company has once again become a leading technology innovator. It plays a central role in today’s cloud and artificial intelligence developments, accelerating its growth as next-generation technologies displace legacy businesses and provide a robust future. Reasons why Oracle is a leader include its Gen 2 cloud design, partnerships with the largest hyperscalers, and the world’s fastest, most efficient data centers.

Highlights for the second quarter include a 336% increase in GPU consumption thanks to the company’s newest data center, the world’s largest supercomputer, which houses 65,000 NVIDIA computers. NASDAQ: NVDA H200 GPUs in one box and deal with Meta Platforms NASDAQ: META. Meta will use Oracle’s cloud to train its Llama models, which Oracle will use to expand its artificial intelligence capabilities.

Oracle Price Drop: A Dip Buy Opportunity That Won’t Last Long

Oracle’s share price fell following the release of its second-quarter results, presenting an excellent opportunity to buy the stock on the dip. The company missed both earnings and profits, but the miss was minor. Analysts have set the bar high. The company has seen growth that is accelerating and its long-term prospects are strong thanks to record levels of demand for AI.

The company’s net revenue of $14.1 billion rose 9.0%, just 14 basis points below the MarketBeat consensus, with strength concentrated in its cloud and infrastructure segments. Infrastructure in particular grew by 52%, outpacing its peers. Oracle is still a tiny hyperscaler, but it’s growing the fastest as AI developers flock to it. The company is gaining share in a world dominated by Alphabet. NASDAQ: GOOGLEAmazon/AWS NASDAQ:AMZNand Microsoft NASDAQ: MSFT.

Margin news is also good. The company was able to increase its profits and drive net income growth. Adjusted operating income rose 10% and net income rose 12%, resulting in positive quarterly cash flow despite significant investments in expansion and new technology.

Balance sheet highlights include increases in cash, accounts receivable, current assets and total assets, only partially offset by increases in liabilities. The end result is that equity is up nearly 55% year-to-date and is expected to continue to grow in the fourth quarter and into 2025. On the debt side, Oracle continues to have moderately high debt levels but is in an increasingly strong position and could address this issue over the next year. the nearest quarters. Currently, long-term debt is approximately 5.6 times equity and 10 times cash.

The outlook is another reason to buy this stock while it’s down. The company reports that its strong sales pipeline is growing faster than revenue. Evidence of this is the RPO, which grew by 50% on a currency neutral basis and was driven by an 80% increase in infrastructure. The company expects fourth-quarter revenue to grow about 10% and earnings per share to rise 9%, which is mixed compared to analyst consensus but favorable for investors with earnings per share above target. Given trends, both are likely to be cautious.

Analysts Raise Price Targets for Oracle, See 10% Upside Potential on Critical Support

Analyst reaction is bullish, with MarketBeat tracking more than a dozen changes, including a price target increase. The consensus new targets are a move towards $197, with nine or nearly 70% of them at or above $200. At the top end, the stock is priced at $220, representing another 10% increase over the consensus estimate, and is likely to be priced higher in the coming quarters.

Oracle’s price action after the release was sketchy, but the market was up 85% year-to-date ahead of the report and was in need of a correction. Pre-market dynamics are close to a critical level, around $175, so the sale may not be very deep. In this scenario, the market could quickly recover and rally higher, setting a new all-time high in early 2025. Otherwise, this market could fall to $160 or lower. Trade on

Before you consider metaplatforms, you should hear this.

MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat has identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes hold… and Meta Platforms wasn’t on the list.

While Meta Platforms currently has a Moderate Buy rating among analysts, the top-rated analysts consider these five stocks to be Strong Buys.

View five stocks here

Want to avoid the hassle of mud, volatility and uncertainty? You’ll have to exit the market, and that’s not sustainable. So where should investors invest their money? Find out in this report.

Get this free report

Did you like this article? Share this with a colleague.

The link has been copied to the clipboard.