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Oracle Corporation (NYSE:ORCL)’s stock has reached a new all-time high, hitting 228.23 USD, with a market capitalization now exceeding $638 billion. According to InvestingPro data, the stock is currently trading at a P/E ratio of 50.8x, suggesting a premium valuation. This milestone marks a significant achievement for the company, reflecting investor confidence and strong market performance. Over the past year, Oracle’s stock has delivered a 54.5% total return, while maintaining a 17-year streak of consistent dividend payments. The company has demonstrated solid fundamentals with a gross profit margin of 70.5% and annual revenue of $57.4 billion. This upward trend has been driven by the company’s strategic initiatives and consistent financial results, positioning Oracle as a key player in the technology sector. The new all-time high is a testament to Oracle’s ability to adapt and thrive in a competitive market landscape. For deeper insights into Oracle’s valuation and growth prospects, including 20 additional exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Oracle Corp . has reported strong operating results for fiscal 2025, with revenues increasing by 8.4% to $57.4 billion, and cloud services revenue growing by 24% to $24.5 billion. S&P Global Ratings, however, revised its outlook on Oracle to negative from stable, citing concerns over the company’s rapidly expanding cloud infrastructure business and its impact on free operating cash flow. Oracle’s capital expenditures have more than tripled to $21 billion, representing 37% of revenues, with forecasts indicating an increase to nearly $27 billion in fiscal 2026. Additionally, Oracle has signed a major cloud service agreement expected to generate over $30 billion annually starting in fiscal 2028, as part of the Stargate Project, which involves partners like OpenAI and SoftBank (TYO:9984).
OpenAI has also expanded its partnership with Oracle to secure 4.5 gigawatts of data center power in the U.S. for its AI needs. BMO Capital raised its price target for Oracle to $245, maintaining an Outperform rating, while DA Davidson increased its target to $220, citing a new cloud service agreement with ByteDance. William Blair reiterated its Outperform rating, highlighting Oracle’s strong position in the database market and its multicloud deployment options. These developments indicate Oracle’s continued focus on expanding its cloud infrastructure and AI capabilities, despite the financial challenges highlighted by analysts.
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