Analysts at Global Equities Research led by Trip Chowdry see an opportunity. Noting that Oracle (ticker: ORCL) cloud infrastructure revenue jumped 66% in the recent quarter, and that Oracle can charge its customers significantly more than OpenAI, the maker of ChapGBT, per unit text, they say buy the shares on the current weakness.
Global Equities Research has a price target for Oracle shares at $140. The stock is down 9.5% in premarket trading Tuesday at $114.69. While earnings and revenue for the last quarter were broadly in line with expectations, guidance for the coming quarter fell short.
Analysts at Guggenheim led by John DiFucci also said that Oracle’s growth story was still intact after yesterday’s news. They give the stock a price target of $150.
However, D.A. Davidson analyst Gil Luria begged to differ. Their price target dropped to $105 from $115 after the results. Long-term drivers of growth aren’t benefiting the business as much as hoped, Luria wrote.
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