Oracle shares are experiencing a significant decline following the software company's disappointing guidance, leaving investors concerned. Despite this setback, analysts at Global Equities Research led by Trip Chowdry believe that there is a unique opportunity waiting to be seized. In the recent quarter, Oracle's cloud infrastructure revenue surged by an impressive 66%. Furthermore, when compared to OpenAI, the maker of ChapGBT, Oracle has the advantage of being able to charge its customers significantly more per unit text. In light of these factors, Global Equities Research advises buying shares while they are currently weak.
With a price target of $140, Global Equities Research remains optimistic about the potential for Oracle shares. However, in premarket trading on Tuesday, the stock has already declined by 9.5% to $114.69. While the earnings and revenue for the previous quarter were generally in line with expectations, the guidance for the upcoming quarter fell below projections, leading to the market downturn.
Analysts at Guggenheim, led by John DiFucci, also maintain a positive outlook on Oracle's growth story. Despite yesterday's news, they have assigned a price target of $150 to Oracle shares.
On the other hand, D.A. Davidson analyst Gil Luria holds a differing perspective. Following the results, Luria revised their price target from $115 to $105. According to Luria, the long-term drivers of growth that were anticipated have not had as significant an impact on the business as initially hoped.
In conclusion, Oracle shares face a challenging period as the company struggles to meet investors' expectations for guidance. While some analysts see this as an opportunity and project a positive future for the stock, others remain cautious about its growth potential.