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Here's How Much Traders Expect Oracle Stock To Move After Earnings
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Oracle is set to report its latest quarterly results after the closing bell Tuesday. Traders anticipate the event could lead to a big move in the cloud computing giant’s stock.
Options pricing suggests traders see Oracle (ORCL) stock moving as much as 10% in either direction by the end of the week. A shift of that size from the stock’s closing level on Monday could lift shares back to around $167, recovering some of their recent losses, or pull them down to $136.
Shares of Oracle have lost nearly 60% from their September highs, amid concerns about its backlog’s dependence on OpenAI, and whether its AI-related investments will live up to their promises.
Why This Is Significant
While concerns about the trajectory of AI have weighed on many tech stocks broadly in recent months, Oracle’s stock has taken a harder hit than most and could face a higher bar to turn sentiment around.
Ahead of Tuesday’s report, analysts at Jefferies said they believe the recent sell-off has been overdone. They suggested investors are underestimating the company’s growing opportunities outside of its relationship with OpenAI.
Oracle is seen reporting adjusted earnings per share of $1.72 on a nearly 20% year-over-year jump in revenue to a record $16.92 billion in its fiscal third quarter, according to estimates compiled by Visible Alpha.
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Wall Street analysts are largely bullish on Oracle’s stock. Of the 12 analysts with current ratings compiled by Visible Alpha, 11 recommend buying the stock, compared to just one “sell” rating. Their mean target around $247 would suggest more than 60% upside.
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