Oracle announced that it would ramp-up hiring to expand footprint in cloud, while Jefferies slashed their price target on the company’s stock.
Oracle plans to open around 20 more cloud data centers by the end of next year - a move that's expected to help customers to safely store data for disaster recovery or to comply with local data storage laws. The cloud company currently has such centers in 16 regions, including a dozen that it opened in the past year. New locations will be built in Chile, Japan, South Africa and United Arab Emirates as well as elsewhere in Asia and Europe. The expansion could be seen as an effort on Oracle’s part to bolster its presence in the near $40 billion market for cloud computing and storage.
Oracles’ plans to up the ante on its cloud business will create an additional 2,000 jobs in the company, according to Oracle. Jobs will be added in Oracle’s software development hubs in Seattle, the San Francisco Bay Area and India, as well as near new data centers, said Don Johnson, executive vice president of the Oracle Cloud Infrastructure unit (as mentioned in a Reuters report).
Separately, Jefferies analyst Brent Thill downgraded Oracle shares to hold from buy, and also lowered his price target on the shares to $66, a $6 reduction from the prior level. Thill noted that the company has "lost ground in the infrastructure business as workloads migrate to the cloud." On the other hand, Microsoft shares got a price target boost (to $160 from $93 per share) from Thill, as he believes that there is a "clear line of sight into double-digit revenue growth for the foreseeable future", for Microsoft.
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ORCL's RSI Oscillator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ORCL advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
ORCL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on April 01, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on ORCL as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ORCL turned negative on March 28, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
ORCL moved below its 50-day moving average on April 17, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ORCL crossed bearishly below the 50-day moving average on April 23, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ORCL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for ORCL entered a downward trend on April 24, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ORCL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (61.350) is normal, around the industry mean (29.911). P/E Ratio (33.108) is within average values for comparable stocks, (155.220). Projected Growth (PEG Ratio) (1.057) is also within normal values, averaging (2.725). Dividend Yield (0.013) settles around the average of (0.081) among similar stocks. P/S Ratio (6.720) is also within normal values, averaging (55.249).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of a diversified line of business software products
Industry PackagedSoftware