Oracle Stock Soars to Record High on AI-Driven Demand and Strong Earnings

Watch These Oracle Price Levels as Stock Surges to Record High

Oracle (ORCL) shares will likely remain in focus on Tuesday after jumping more than 5% to a new record high yesterday following recent bullish coverage from several investment firms. Jefferies analysts lifted their price target on the stock to $190 from $170 over the weekend, while New York-based Melius Research on Monday upgraded the shares to a "buy" rating, with both firms impressed with the software giant's advancements and growth opportunities in the cloud computing market. Oracle shares have gained 22% so far in September through Monday's close, paving the way for their best month since October 2022. Investors cheered the company's better-than-expected earnings report, which was announced last week alongside a new partnership with Amazon's (AMZN) cloud computing unit as Oracle continues to expand its artificial intelligence (AI) footprint. The stock was up 0.6% at $171.30 in recent premarket trading Tuesday. Below, we'll take a close look at the technicals on Oracle's weekly chart and identify important price levels to watch out for. After rallying to a new record high in mid-July, Oracle shares retraced to the top trendline of an ascending triangle before resuming their longer-term uptrend in early August. More recently, gains accelerated last week on the highest trading volume since mid-December, though the relative strength index (RSI) indicates overbought conditions, with a reading above the 70 threshold. Consequently, the stock may see short-term profit taking before potentially making another trending move higher. During pullbacks, investors should monitor two key price levels. The first sits at $145, an area on the chart where the shares may initially find support near last week's earnings breakout point and a series of comparable trading levels positioned around the July peak. A deeper retracement could see the stock retest the $127 level, the same location where the price found buying interest last month near the ascending triangle's top trendline. This region also finds added support from the upward sloping 50-day moving average. To forecast a potential price target above the all-time high (ATH), we can use a bars pattern. To do this, we extract the stock's trending move following a retest of a prior ascending triangle in late January 2021 and reposition it from the current pattern's retest area. Such a technique projects an upside target of around $215. It's also worth pointing out the prior trending move occurred over 45 trading days, meaning that the stock's current uptrend from last month's low could play out until early June next year if price history rhymes. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

Why Oracle Stock Jumped More Than 5% to a Record High on Monday

Analysts believe Oracle's strength in cloud infrastructure and partnerships with major cloud players will drive revenue growth. Oracle (ORCL) shares jumped to a record high on Monday, after a pair of investment firms commended the software giant's advancements and opportunities for growth in the cloud computing market. In a note to investors published over the weekend, Jefferies analysts increased their price target on Oracle stock to $190 from $170. Analysts at Melius Research followed suit on Monday, upgrading their rating on Oracle shares to "buy." Both analyst teams arrived at their assessments after attending Oracle's CloudWorld 2024 Conference, held last week in Las Vegas. CloudWorld is an annual customer event where Oracle introduces new products and discusses its technological outlook. Oracle shares gained 5.1% on Monday to close at $170.33. Following CloudWorld, Jefferies analysts expressed their belief that Oracle "is getting its mojo back." The team highlighted the increasing competitiveness and accelerated adoption of Oracle Cloud Infrastructure, noting strong growth in Oracle's backlog as a driver of revenue strength. Meanwhile, analysts at Melius also focused on revenue growth acceleration, as well as the successes of Oracle CEO Larry Ellison in pursuing strategic partnerships and building a cloud platform that prioritizes artificial intelligence (AI). In particular, Melius believes Oracle's partnerships with the "big three" cloud providers -- Amazon's (AMZN) Amazon Web Services, Microsoft's (MSFT) Azure, and Alphabet's (GOOGL) Google Cloud Platform -- could help ensure a sustainable pipeline for the cloud business and alleviate margin pressure. Oracle stock tore higher early last week after the enterprise software firm beat quarterly sales and profit estimates and announced a new multicloud partnership with AWS. The stock extended its gains after an executive provided an optimistic forecast for Oracle's revenue growth over the next few years. Including Monday's gains, Oracle stock has now soared nearly 22% since its Sept. 9 earnings report.

Why Oracle Stock Was Climbing Higher Today | The Motley Fool

Analysts continue to upgrade the tech giant following its earnings report last week. Shares of Oracle (ORCL 4.83%) were moving higher today as the tech giant continued to win acclaim from Wall Street analysts, a week after the company posted a strong fiscal first-quarter earnings report as the company's cloud infrastructure business continues to surge in the artificial intelligence (AI) era. As of 1:14 p.m. ET, the stock had jumped 6.3% on the news. In the aftermath of gains following last week's earnings report, the stock continued to move higher as Melius Research upgraded the stock from hold to buy. Melius credited Oracle's accelerating revenue growth, and stable and solid margins, and it thinks the company can continue to top analyst estimates. The research firm raised its price target from $155 to $210, implying a 22% upside in the stock. Additionally, over the weekend, Jefferies raised its price target on the stock from $170 to $190 and reiterated its buy rating on the stock. Analyst Brent Thill said after attending a recent investor conference and talking to Oracle partners that the company is "getting its mojo back." It also noted that growth in both Oracle Cloud Infrastructure and backlog is accelerating. With its strength in database management and a cloud infrastructure business known for security, Oracle seems like the kind of business that should thrive in the AI era, and indeed, it's opening data centers faster than it ever has before. In the first quarter, ended Aug. 31, the infrastructure business jumped 45% to $2.2 billion, and overall revenue was up 7% to $13.3 billion. Remaining performance obligations jumped 53% in the quarter to $99 billion, showing demand is surging, and adjusted earnings per share was up 8% to $1.39, meaning margins are expanding. The company remains optimistic about the future of AI and its cloud infrastructure business. Given that momentum, the stock looks like a good bet to keep gaining.