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Investing.com - Oracle Corporation (NYSE:ORCL) stock gained following positive analyst commentary from Bernstein SocGen Group regarding the company’s TikTok deal. The company, now valued at over $871 billion, has seen its shares surge more than 100% in the past six months. According to InvestingPro data, Oracle is currently trading above its Fair Value, reflecting strong investor optimism about its growth prospects.
Bernstein analyst Mark Shmulik emphasized Oracle’s growing position in cloud services, noting the company "recently announced $317B in new RPO which could make them the 3rd largest hyperscaler."
The analyst highlighted that benefits from the TikTok arrangement extend "beyond the revenue and cash flow," positioning Oracle to become "more relevant with consumer internet companies."
Shmulik also pointed to Oracle’s opportunity to prove "its AI inferencing capabilities," suggesting that "anonymized access to TikTok data could prove" valuable for these efforts.
The analyst acknowledged that Oracle "will need to explain how they fund this all the massive OCI build-out," referring to Oracle Cloud Infrastructure, but concluded that the deal represents "real upside to the story."
In other recent news, Oracle has secured a substantial $300 billion cloud contract with OpenAI, marking one of the largest cloud agreements to date. This deal is set to span approximately five years, emphasizing the growing demand for AI data centers. Additionally, Oracle is part of a consortium aiming to keep TikTok operational in the United States, according to reports. On the analyst front, Jefferies has reiterated its Buy rating on Oracle, maintaining a price target of $360, highlighting the company’s market share gains in the AI sector.
Meanwhile, DA Davidson has held its Neutral rating with a $300 price target, noting the impact of OpenAI’s growth on Oracle’s business. BNP Paribas Exane has increased its price target for Oracle to $377 from $272, maintaining an Outperform rating due to higher revenue forecasts for Oracle Cloud Infrastructure. These developments reflect Oracle’s strategic advancements and the varied perspectives of financial analysts regarding its future performance.
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