Oracle Corporation | ORCL & Ai If there is one person that you can compare it with Tony Stark aka IRON MAN is Larry Ellison
the ruthless entrepreneur who is born to win and be the number 1. Since the close of trading Friday, Ellison’s net worth has pumped 8 billion dollar to reach $ 206 billion
Oracle’s stock has reached new highs following its earnings report last week, which exceeded expectations and raised its revenue forecast for fiscal 2026.
Orcl have risen 20% this month and If this upward trend holds, it would mark their best performance since October 2022, when the stock jumped 28%, and the second best month since October 2002, nearly two decades ago.
The company’s stock success is partly driven by its involvement in the booming artificial intelligence sector. Ellison, Oracle’s founder since 1977, mentioned in last week’s earnings call that the company is building data centers to meet the growing demand for generative AI.
“We are literally building the smallest, most portable, most affordable cloud data centers all the way up to 200 megawatt data centers, ideal for training very large language models and keeping them up to date,” Larry said during the call
also he recently mentioned that Elon Musk and I ‘begged’ Jensen Huang for GPUs over dinner!We need you to take more of our money please!! It went ok. I mean, it worked!
Oracle also announced last week a partnership with Amazon’s cloud computing division to run its database services on dedicated hardware. Over the past year, it has formed similar alliances with Microsoft and Google, two other major cloud infrastructure providers
Oracle's cloud services are a key driver of their success, with revenue from this division growing 21% year over year, reaching $5.6 billion in quarterly earnings
Oracle is becoming a crucial provider, acting like a foundational layer for AI-focused companies. Their database systems are now critical to supporting businesses like OpenAI, AWS, and Google Cloud in building the infrastructure for future AI advancements. Despite AWS and Google Cloud being direct competitors, Oracle’s software remains essential to AI’s future.
Oracle's technology plays a foundational role, much like GPUs have in AI development. As companies seek efficient cloud-database solutions for AI workloads, Oracle is well-positioned to fulfill this demand.
Considering their strong Q1 performance and the central role of their database software in this field, I now view Oracle as a strong buy. The company's AI-powered cloud solutions, strategic partnerships, and growing database market make their technology indispensable for the future of AI
Oracle’s fiscal Q1 for FY 2025 exceeded expectations, with non GAAP earnings per share (EPS) of $1.39, surpassing estimates by $0.06, and revenue hitting $13.3 billion, outperforming projections by $60 million. The cloud segment, which includes their AI database software, remains a significant growth driver, generating $5.6 billion in revenue.
Most of Oracle’s revenue came from the Americas, contributing $8.3 billion, a 6.9% year-over-year increase. The AI revolution, gaining momentum in the US, aligns with their strong revenue growth in this region.
During the Q1 earnings call, management emphasized their expanded partnerships with major tech companies like Google Cloud (Alphabet Inc) and AWS (Amazon), which are notable given that they are also competitors. Oracle highlighted its success in the AI training space, pointing to the construction of large data centers equipped with ultra-high-performance RDMA networks and 32,000-node NVIDIA GPU clusters.
In the EMEA region, crucial to Oracle’s growth due to rising demand for cloud infrastructure and AI solutions among European enterprises and governments (sovereign AI), the company reported $3.3 billion in revenue.
Oracle’s earnings per share aka EPS is projected to grow at a compound annual rate of 13.5% for FY 2025, increasing to 14.41% in FY 2026, and continuing to compound at a modest double-digit rate in the coming years.
While these projections show strong potential for Oracle to be a compounder, I believe they may be somewhat conservative. The company’s remaining performance obligations (RPO) jumped 53% year-over-year to $99 billion by the end of the first fiscal quarter, indicating that their pipeline of signed work is growing faster than revenue. Once Oracle scales its solutions and workforce to match this RPO growth, we could see both revenue and EPS accelerate further.
In fact, while Oracle’s forward revenue growth is projected at just 8.86% for the next 12 months, their backlog is growing by over 50%. This suggests a notable gap between revenue expectations and actual demand.
I believe the current revenue growth projections are too low, and once revised upward, they could become a key growth catalyst for the company.
As for Oracle’s valuation, its forward price-to-earnings (P/E) ratio stands at 24.74, which is just 6.76% above the sector median of 23.17. However, given Oracle’s growth potential, I think it warrants a P/E ratio closer to 30.12, which is roughly 30% above the sector median. This would imply an additional 21.75% upside for the stock, excluding dividends.
With a forward P/E ratio only slightly above the sector median, despite Oracle’s impressive growth, the company’s performance suggests the stock should be trading at a higher valuation.
Larry Ellison is the man that I always can trust his vision and always bullish on his spirit and his ambitious. Oracle expanding influence in AI, coupled with robust revenue growth, positions the stock for significant upside. AI is like a modern day Gold Rush, and Oracle, much like GPU makers, is providing the essential tools the "pickaxe" for AI companies so That’s a space I’m eager to invest in
the chart looks insane and if there will be pullback I consider it as a buy opportunity
Orcllong
Oracle’s Earnings Growth & Amazon Deal Propel Stock to New HighsOracle Corporation ( NYSE:ORCL ) is riding a wave of investor optimism after posting impressive fiscal first-quarter results and announcing a strategic multicloud partnership with Amazon Web Services (AWS). This combination of strong financial performance and a game-changing collaboration has driven Oracle’s stock up nearly 9% in extended trading, marking a significant milestone in the company’s journey as a leading enterprise software and cloud services provider.
Key Highlights
- Earnings Beat Expectations: Oracle reported first-quarter revenue of $13.3 billion, up 7% year-over-year, surpassing analysts' expectations. Earnings per share climbed to $1.03, beating the previous year’s 86 cents.
- AI-Driven Cloud Growth: Oracle’s cloud services, its largest business segment, saw a 21% revenue increase to $5.6 billion, fueled by heightened demand for AI training models. The company’s Oracle Cloud Infrastructure (OCI) surged 45% year-over-year to $2.2 billion, a testament to the robust growth driven by AI applications.
- Amazon Partnership: Oracle announced a multicloud partnership with AWS, allowing customers to leverage Oracle database technology within AWS cloud data centers. This collaboration is expected to accelerate cloud adoption and drive further revenue growth.
Why Oracle is Soaring
Oracle’s financial strength is closely tied to its strategic focus on AI and cloud computing. With the rapid rise of AI large language models, Oracle’s cloud infrastructure has become a vital resource for companies looking to train these models efficiently. CEO Safra Catz highlighted a strong contract backlog, emphasizing the potential for sustained revenue growth throughout fiscal year 2025.
Additionally, Oracle’s partnership with AWS underscores its commitment to becoming a central player in the multicloud environment. By integrating with one of the world’s largest cloud providers, Oracle not only expands its market reach but also solidifies its position as a versatile and reliable cloud service provider, giving clients more flexibility and options for their data management needs.
The combination of AI-fueled demand and strategic alliances makes Oracle a compelling investment opportunity. Its impressive earnings growth and market adaptability suggest that the company is well-positioned to capitalize on the expanding cloud market, especially as enterprises increasingly look towards multicloud solutions.
Technical Analysis:
Oracle’s stock has been on a bullish trajectory, gaining over 34% year-to-date before Monday’s after-hours surge. The recent price action suggests a continuation of this upward trend, particularly with the stock breaking out of a well-defined trading range in mid-June.
- Short-Term Price Targets: Following the breakout, Oracle shares ( NYSE:ORCL ) defended a key level in early August before rallying over 11% from last month’s low. Technical analysis suggests a short-term price target of $154, calculated using the measuring principle that involves adding the height of the prior trading range to the breakout point.
- Critical Retracement Levels: Investors should watch for potential retracements to the $145 level, which previously served as resistance and may now act as support. This level will be crucial in determining whether Oracle ( NYSE:ORCL ) can maintain its upward momentum or if profit-taking could lead to a temporary pullback.
Future Outlook
Oracle’s recent performance and its expanding cloud business provide strong tailwinds. However, it’s important to consider potential risks, such as overbought market conditions and the possibility of a cooling-off period. The current rally has been fueled by euphoria around AI and partnerships, but extended upward trends without consolidation can lead to volatility.
The technical outlook remains positive, but investors should be mindful of the broader market environment and Oracle’s valuation. With the stock up significantly in recent months, any signs of slowing growth or competitive pressures could prompt a retracement.
Conclusion
Oracle’s blend of AI-driven earnings growth, strategic cloud partnerships, and technical breakout positions it as a standout performer in the tech sector. The multicloud deal with AWS is a game-changer that not only broadens Oracle’s market reach but also underscores its adaptability in a rapidly evolving industry.
While the stock’s current momentum is promising, careful monitoring of key technical levels and fundamental developments will be essential in navigating Oracle’s next move. As the company continues to innovate and expand its cloud offerings, it stands well-positioned to capitalize on the growing demand for AI and multicloud solutions, potentially driving further gains for investors in the months ahead.
ORCL Textbook Bull Pennant Coincident With Index Support CatchORCL Upside break-out of a Descending Pennant.
Some things to note:
Hold of 50 EMA within the pattern
High volume entry into the pattern with descending volume throughout
Notable pickup in activity on the upside break
MACD Cross coinciding with break
Throwback following the upside break that tracks along the upper bound of the pattern and is halted at the 50 EMA
Measuring Implications for the pennant begin with a break out of a previous resistance to the top of the minor move that begins the pattern. The resulting move applies this distance to the beginning of the breakout of the pattern.
I have marked and color coded two potential areas to take into account when measuring for price targets, and marked volume POI's to justify those as start-points for their measuring.
PT1: 164
PT2: 143
SL: 50 EMA Break-down
Some other things going on that I observe:
SPX, DJIA, IXIC bouncing following minor (representing trend, not magnitude) decline
VIX 200 EMA rejection. Still cemented below 20 for now.
This analysis is for future price implications of ORCL.
I currently hold a position entered on AUG16.
Feel free to reach out for questions, including a review of a textbook pennant.
Manage Risk
Only invest what you are willing to lose
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Oracle in a range.Oracle - 30d expiry - We look to Buy at 86.41 (stop at 83.42)
Price action continued to range between key support & resistance (86 - 90) although we expect a break of this range soon.
The bias is to break to the upside.
The primary trend remains bullish.
Preferred trade is to buy on dips.
The 1 day moving average should provide support at 86.40.
Posted Mixed Daily results for the last 56 days.
Our profit targets will be 93.88 and 94.88
Resistance: 90.00 / 91.22 / 92.00
Support: 88.00 / 85.87 / 84.00
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ORCL best growth quarter since 2018Oracle (ORCL) reported revenue of $10.4 billion, up 6% growth YoY vs company’s guidance range of 3% to 5%.
Street consensus forecast was $10.2 billion.
ORCL quarterly earnings of $1.21 per share VS Consensus Estimate of $1.11 per share.
Earnings surprise of 9.01%.
My price target is 100usd, similar to Citigroup`s.
ORACLE CORP WINS TIK TOK DEAL (ROCKET TIME)TikTok has reached an agreement to sell its U.S. operations to software giant Oracle, a landmark deal that could redefine how the U.S. and China square off over the reach of their homegrown technology companies.
Oracle has reportedly won a deal to manage TikTok’s US cloud operations. Oracle had been rumored to be part of the bidding process to acquire TikTok, but The Wall Street Journal reports that the company has been selected as a “trusted tech partner” instead. This is different from an outright sale, and appears to suggest Oracle will be helping run TikTok’s US operations with its own cloud technologies.
News of an Oracle deal comes just an hour after Microsoft revealed it was no longer acquiring TikTok after its bid was rejected by TikTok owner ByteDance. Microsoft had been pursuing a deal to buy TikTok’s operations in the US, Australia, Canada, and New Zealand. It’s clear talks have swayed away from a full acquisition, with Oracle reportedly winning the bid to be a technology partner instead.
President Trump signed an executive order August 6th blocking all transactions with ByteDance, and the order demanded an American company purchase TikTok’s US business. The EO was intended to take effect within 45 days, although the president later signed a follow-up order giving ByteDance 90 days to sell or spin off TikTok in the US. This does not supersede the original deadline, though. As Department of Commerce secretary Wilbur Ross told The Verge: “Per the 45-day period outlined in the Executive Orders, the Department of Commerce is operating under a deadline of September 20th.”
An inverse or reverse head and shoulders pattern is also a reliable indicator which can also signal that a downward trend is about to reverse into an upward trend. ... The final rally after the third dip signals that the bearish trend has reversed and prices are likely to keep rallying upward.