Oracle Downgraded To Sell On 'Surprisingly Uninspiring' Results After AI-Fueled Rally

Blockhead12-20

Oracle (ORCL) stock fell Friday after an analyst downgraded the stock to sell, citing a "gen AI hype cycle" that has stretched the company's valuation and recent "uninspiring" earnings results. In a ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOracle Downgraded To Sell On 'Surprisingly Uninspiring' Results After AI-Fueled Rally\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-20 23:42 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/news/technology/oracle-stock-downgrade-ai-orcl-news/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Oracle (ORCL) stock fell Friday after an analyst downgraded the stock to sell, citing a \"gen AI hype cycle\" that has stretched the company's valuation and recent \"uninspiring\" earnings results.\nIn a ...</p>\n\n<a href=\"https://www.investors.com/news/technology/oracle-stock-downgrade-ai-orcl-news/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ORCL","symbol_name":"甲骨文","start_time":0,"source_url":"https://www.investors.com/news/technology/oracle-stock-downgrade-ai-orcl-news/","article_id":"2493270814","we_media_id":null,"thumbnails":["https://www.investors.com/wp-content/uploads/2018/01/Stock-Oracle-05-shutter-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2493270814","pubTimestamp":1734709371,"columns":[],"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"An analyst downgraded the stock to sell, citing \"gen AI hype\" and recent uninspiring\" results.","collect":0,"end_time":0,"defaultTopTitle":"investors.com","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"ORCL":"甲骨文"},"translate_title":"人工智能推动反弹后，甲骨文因业绩“出人意料地平淡”而被下调至卖出评级","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ORCL":1},"content_text":"Oracle (ORCL) stock fell Friday after an analyst downgraded the stock to sell, citing a \"gen AI hype cycle\" that has stretched the company's valuation and recent \"uninspiring\" earnings results.\nIn a new client note titled \"After a Year Filled with Hype, Froth, and Bold Capex Plans – Downgrading ORCL to Sell,\" Monness Crespi Hardt analyst Brian White lowered his outlook on Oracle stock from neutral to sell.\n\n\n\n↑\nX\n\n\n\n\nHere's How New Big AI Winners And A Changing Political Landscape Will Move The Market In 2025\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nHere's How New Big AI Winners And A Changing Political Landscape Will Move The Market In 2025\n\n\n\n\n\"In our view, Oracle represents a high-quality company with the opportunity to participate in a cloud transformation and benefit from the generative AI trend,\" White wrote. \"However, valuation is stretched, competition fierce, software in transition, and the macro environment fragile.\"\nOracle had gained 60% year-to-date heading into Friday, which White noted would mark the software giant's best yearly performance since 1999.\nBut that has stretched Oracle's price-to-earnings multiple to double its historical average, he added. Despite that sign of investor confidence, Oracle delivered \"surprisingly uninspiring results\" when it report fiscal second quarter earnings on Dec. 9, White wrote. Shares fell more than 6% after both earnings and sales came in short of expectations.\nOn the stock market today, Oracle stock is down nearly 1% at 167.70 in recent action.\nOracle Spends Big To Chase The Cloud's Big Three\nWhite also questioned Oracle's plans to double capital expenditures to $14.2 billion for its May-ending fiscal 2025. The company is citing significant demand driven by AI for its Oracle Cloud Infrastructure business, which rents servers and other computing power.\nBut White noted that the company is up against tech giants Amazon (AMZN), Microsoft (MSFT) and Google in that market.\n\"In our view, the public cloud landscape is daunting, a field dominated by three, large, innovative, deep-pocketed Big Tech companies with a powerful, ever-expanding gen AI arsenal, combined with a deep cloud portfolio,\" White wrote.\nOracle has had \"early success\" attracting gen AI clients to its cloud, White said\nBut, the note added, \"the leading clouds are becoming more competitive in this area. Plus, we expect an inevitable shakeout in the LLM industry,\" referring to the large language models that are trained to vast data sets to power AI capabilities.\nWhite gives Oracle a price target of 130, which he says provider a price-to-earnings multiple closer to the company's historical average.\nOracle Stock: Worst Month Of 2024\nDecember has already seen investors at least press pause for the Oracle rally. Shares are down 10% this month, including Friday's early loss. That would mark Oracle's worst month of 2024, though shares also slumped 9.4% in April.\nThe stock hit an all-time high of 198.31 on Dec. 9, before earnings results later that day kicked off its recent slump. The earnings drop saw Oracle fall below two key support levels in its 21-day and 50-day moving averages.\nStill, Oracle stock remains on pace for its best year since 1999. And on the flip side, Oracle stock was named a top 2025 software pick by analysts at Evercore ISI earlier this week. \nMeanwhile, Oracle stock had an IBD Composite Rating of 89 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. Further, the best growth stocks have a Composite Rating of 90 or better.\nOracle's IBD Relative Strength Rating was 87 out of 99. The RS Rating means that Oracle has outperformed 87% of all stocks by price gains over the past year.\nYOU MAY ALSO LIKE:\nGenerative AI Seen Helping Enterprise Software Rally 'Grind Higher' Into 2025\nIBD Live: Learn And Analyze Growth Stocks With The Pros\nGet Timely Buy & Sell Alerts With IBD Leaderboard\nTop Growth Stocks To Buy And Watch\nBest IBD 50 Stocks To Watch","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2493270814"}