Swing To Trade
  • Stock
  • Politics
  • Business
  • Sports
Stock

Oracle stock price forecast: buy or sell before its Q1 earnings?

by admin September 8, 2025
September 8, 2025

Oracle stock price has pulled back in the past few weeks, moving from a high of $260 in July to $232 today. This performance could change this week as Larry Ellison’s company publishes its financial results. 

Oracle stock has benefited from the AI boom

Oracle share price has done well in the past few months, helped by the ongoing AI tailwinds. Its stock has jumped by over 97% from its lowest level in April this year. 

The company has become a major player in AI, as evidenced by its participation in Stargate, the $500 billion project in collaboration with Softbank, OpenAI, and MGX. The project will see the company build large data centers in the United States. It recently announced a $30 billion deal with OpenAI.

Oracle has become a major option for companies building artificial intelligence solutions. While its cloud service is smaller than Microsoft’s and Google, it is seeing robust growth in an industry that analysts expect to continue growing in the coming years. Studies expect the sector will have a CAGR of over 17% by 2030.

The most recent results showed that Oracle’s remaining performance obligations (RPO) rose by 41% in Q4 to $138 billion. The Q4 revenue jumped by 11% to $15.9 billion, while the infrastructure as a service (IaaS) revenue rose by 52% to $3 billion. 

Its cloud application (SaaS) revenue rose by 12% to over $3.7 billion. Oracle’s revenue and profits are growing. Its net income jumped by 22% to $3.4 billion. 

Wall Street is optimistic, but valuation is a major concern

Analysts anticipate that its revenue will continue to do well in the first quarter. The average revenue is expected to come in at $15 billion, up by 13% from the same quarter. The most optimistic analyst predicts revenue will rise to $15.48 billion. 

Most importantly, analysts expect the second quarter revenue will rise by 15% to $16.2 billion. The annual revenue will be $66.62 billion and $79 billion in the next two financial years. 

Oracle’s revenue growth has coincided with the rising profits. The earnings per share is expected to come in at $1.48, up from $1.39 in the same period last year.

The main concern about the Oracle stock has become more expensive than Nvidia. It trades at a forward price-to-earnings (PE) ratio of 47, much higher than the sector median of 30. Its forward PEG ratio is 2.45. In contrast, NVDA’s metrics are 38 and 0.99, respectively. 

Oracle is also expensive, even with its rule-of-40 metrics. Its forward revenue growth of 16% and its net income margin of 21% gives it a rule-of-40 multiple of 37%.

ORCL stock price technical analysis

ORCL stock chart | Source: TradingView

The daily timeframe chart shows that the ORCL stock price pulled back and bottomed at $218, the strong pivot reverse point of the Murrey Math Lines.

It has remained above the 50-day and 100-day Exponential Moving Averages (EMA). Its Relative Strength Index (RSI) has continued rising in the past few weeks.

Therefore, the stock will likely continue rising as bulls target the year-to-date high of $260.80, which is slightly above the ultimate resistance level at $250. 

A move above that level will point to more gains , potentially to the extreme overshoot level of $281. A move below the support at $210, the 100 EMA will invalidate the bullish outlook.

Read more: Oracle stock price crashes as we predicted: 16% dive possible still

The post Oracle stock price forecast: buy or sell before its Q1 earnings? appeared first on Invezz

previous post
Commodities wrap: oil rebounds after OPEC+ meet; gold rally continues
next post
Ted Cruz accuses Biden of breaking pardon rules with autopen use after bombshell report

Related Posts

Rivian stock price analysis: is the recovery at...

September 29, 2025

What a US government shutdown could mean for...

September 29, 2025

Brazil’s central bank tightens PIX rules to combat...

September 29, 2025

Europe bulletin: key elections, UK economic alerts, NATO...

September 29, 2025

Nike stock price hits a key support before...

September 29, 2025

Top catalysts for the S&P 500 Index this...

September 28, 2025

Why are Bitcoin treasury stocks crashing in 2025?

September 28, 2025

US digest: Tesla gains, PCE unchanged, consumer sentiment...

September 27, 2025

Ovo Energy explores sale of Kaluza Stake at...

September 27, 2025

Lucid stock price is at risk as CEO...

September 27, 2025
Join The Exclusive Subscription Today And Get Premium Articles For Free

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    Recent Posts

    • Rivian stock price analysis: is the recovery at risk?

      September 29, 2025
    • What a US government shutdown could mean for stocks and cryptocurrencies

      September 29, 2025
    • Brazil’s central bank tightens PIX rules to combat financial crime

      September 29, 2025
    • Europe bulletin: key elections, UK economic alerts, NATO strengthens defenses

      September 29, 2025
    • Nike stock price hits a key support before earnings: buy or sell?

      September 29, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 SwingToTrade.com All Rights Reserved.

    Swing To Trade
    • Stock
    • Politics
    • Business
    • Sports