4 Oracle Analysts Dive Into Q2 Print: Why Last Quarter's Revenue Drag Persisted
Portfolio Pulse from Priya Nigam
Oracle Corp (NYSE:ORCL) shares dropped after reporting Q2 sales that fell short of expectations. Analysts from Piper Sandler, Wolfe Research, BofA Securities, and William Blair provided mixed reactions, adjusting price targets and maintaining various ratings. Concerns were raised about Oracle's IaaS growth deceleration and the impact of Cerner on revenue. Despite this, Oracle's operating margin improved, and management remains optimistic about cloud growth and IaaS potential.
December 12, 2023 | 5:15 pm
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Oracle's Q2 sales miss led to a 10.42% drop in share price. Analysts have mixed views but generally reduced price targets, citing concerns over IaaS growth and Cerner's impact on revenue, despite improved operating margins.
The negative reaction to Oracle's Q2 earnings report, highlighted by the sales miss and the subsequent drop in share price, suggests a bearish short-term impact. Analysts' concerns about IaaS growth and the drag from Cerner, despite the improved operating margin, contribute to the negative sentiment. The reduction in price targets by analysts further supports the likelihood of a short-term negative impact on ORCL's stock price.
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IMPORTANCE 90
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