Street Calls of the Week
Investing.com - Oracle (NYSE:ORCL) stock rose Wednesday following several management changes and reports of potential new business deals, as Citizens JMP maintained its Market Outperform rating and $342.00 price target. With a market capitalization of $891.82 billion, Oracle trades at a P/E ratio of 72.35, suggesting a premium valuation according to InvestingPro analysis.
The company announced Clay Magouyrk and Mike Sicilia have been appointed co-CEOs, while Safra Catz will transition to Executive Vice Chair of the board. Despite these leadership changes, Oracle reiterated the guidance it provided during its F1Q26 earnings call. The company maintains a solid financial health score of "GOOD" according to InvestingPro metrics, with revenue reaching $59.02 billion in the last twelve months.
Multiple news sources reported Oracle is in discussions with Meta on a multi-year AI cloud computing deal, potentially expanding its footprint in the growing artificial intelligence infrastructure market.
Separate reports indicated a new Oracle-led investor group would hold approximately 80% stake in the U.S. version of TikTok, subject to final approvals, potentially giving Oracle significant control over the popular social media platform’s U.S. operations.
Citizens JMP analyst Patrick Walravens maintained his bullish stance on Oracle as the stock has increased 90% year-to-date, substantially outperforming the Russell 3000’s 14% gain during the same period.
In other recent news, Oracle Corporation has announced the appointment of Clay Magouyrk and Mike Sicilia as new co-CEOs, with current CEO Safra Catz transitioning to Executive Vice Chair of the Board of Directors. This leadership change is seen positively by Jefferies, which reiterated its Buy rating and set a price target of $360, highlighting the company’s strong position as it advances its AI strategy. Additionally, Oracle is expected to expand its data center in Abilene, Texas, in partnership with OpenAI, with an announcement anticipated from OpenAI CEO Sam Altman and Oracle’s new co-CEO Clay Magouyrk. KeyBanc has maintained its Overweight rating on Oracle, with a price target of $350, citing a 42.4% non-GAAP gross margin in Oracle’s Infrastructure-as-a-Service segment. Furthermore, Oracle’s stock received a boost following positive commentary from Bernstein analyst Mark Shmulik, who noted the significant benefits of Oracle’s deal with TikTok and its potential to become the third-largest hyperscaler. These recent developments underscore Oracle’s strategic moves in leadership, cloud infrastructure, and partnerships.
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