Seeking Alpha analysts turned bullish on Oracle Corporation (ORCL) this week as the database software maker posted its worst weekly performance in more than seven years on Friday after its fiscal Q2 revenue trailed Street forecasts.
Larry Ellison’s database company recorded a ~13% weekly drop, nearly eclipsing its 14% decline in March 2018 when the stock crashed following another disappointing earnings report.
Just ahead of the earnings release on Wednesday, the Austin, Texas-based tech giant drew an Overall Buy rating among SA analysts, after a weeks-long Hold rating mainly driven by its heavy debt load and excessive reliance on OpenAI.
SA analyst The Techie upgraded the stock to Buy from Hold, noting that the company’s underperformance relative to its AI and cloud peers such as Palantir (PLTR) and Broadcom (AVGO) “reflects a valuation and narrative reset, not a deterioration in fundamentals.”
“Oracle is at a unique crossroads: more expensive than traditional cloud platforms, yet meaningfully cheaper than AI-centric names,” the analyst wrote.
According to Daniel Jones, SA Investing Group Leader for Crude Value Insights, Oracle’s (ORCL) selloff is an opportunity. “Valuation appears high on current multiples, but relative to peers and projected growth, ORCL could become a deep value play by the decade’s end,” he opined, reaffirming his Strong Buy rating.
SA analyst The Asian Investor issued similar remarks, highlighting the company’s “strong underlying fundamentals.” “The Cloud firm’s record $523B in RPO, up 438% year-over-year, signals robust demand and rapid contract growth, especially post-OpenAI deal,” the analyst added, reiterating the Buy recommendation.