Why Is Oracle Stock Trading Lower Tuesday?
Portfolio Pulse from Anusuya Lahiri
Oracle Corp (NYSE:ORCL) stock is down in premarket trading after reporting mixed Q2 results. Revenue was $12.94 billion, missing estimates by $0.11 billion, but adjusted EPS of $1.34 beat estimates by $0.02. Cloud revenue grew significantly, with IaaS up 52% and SaaS up 15%. Despite this, analysts from Piper Sandler and UBS lowered their price targets for ORCL from $130 and $135 to $125, respectively. The stock has risen 38% YTD, but is currently trading 9.50% lower at $104.20.
December 12, 2023 | 1:59 pm
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Oracle's Q2 revenue miss and mixed financial results have led to a premarket drop in its stock price. Analysts have lowered price targets despite strong cloud revenue growth.
The stock is trading lower due to the revenue miss, which is a key metric for investors. The lowered price targets from analysts could further influence investor sentiment negatively in the short term, despite the strong performance in the cloud segment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100