Oracle Stock Rallies as Analyst Sees AI Boost
Oracle stock jumped 3% after UBS analyst Karl Keirstead upgraded the rating, citing the company's potential in both cloud business and artificial intelligence.
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Posted 8/29/2023, 4:48:00 PM
barrons.com
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Stocks are set to open slightly lower as all three major averages are on pace to post monthly losses, Oracle is upgraded to buy by UBS, and Salesforce is removed from JPMorgan's Analyst Focus List ahead of earnings.
Oracle (ORCL) stock is rising from a flat base on the strength of an analyst upgrade, as the company's potential to benefit from artificial intelligence applications running on its massive cloud network is attracting investors.
Oracle stock closed trading Tuesday up 2.5% after an analyst upgraded the company's stock, citing its cloud business growth and potential as an artificial intelligence leader.
Oracle shares dropped by about 5% in extended trading after the company reported slightly lower-than-expected fiscal first-quarter revenue, although earnings per share were better than anticipated.
Oracle narrowly missed market expectations for first-quarter revenue due to reduced spending on cloud services, leading to a drop in shares, but the company's advancements in networking technology make it well-suited to capture AI workloads and potentially boost its cloud infrastructure business.
Oracle's stock is facing a decline, but now is a good time to invest in its AI potential.
Oracle shares dipped 13.5% after disappointing earnings and revenue guidance, while WestRock rose 2.8% following news of a merger with Smurfit Kappa, and Apple shares fell 1.8% ahead of the launch event for its new iPhone.