Oracle (ORCL) surges, partnering with Google AI...September earnings are the turning point

▲ Oracle (ORCL)/AI generated image

Oracle (ORCL) jumped nearly 6% as it expanded its artificial intelligence collaboration with Google Cloud. Wall Street's highest price target soared to $325. September earnings have emerged as the next test for a potential rally.

According to U.S. investment media Benzinga on August 3 (local time), Oracle rose 5.94% to $137.64 on Monday. News of expanded artificial intelligence collaboration with Google Cloud, a subsidiary of Alphabet (GOOGL), boosted investor sentiment.

Major technology stocks related to artificial intelligence and cloud also rose across the board. Microsoft (MSFT) and Amazon (AMZN) each rose more than 5-6%. Alphabet also climbed more than 4%. On the same day, the Nasdaq index rose 0.29%, and the S&P 500 index rose 0.62%.

The next turning point is the earnings announcement, expected on September 8. The market projected earnings per share (EPS) to increase from $1.47 in the same period last year to $1.67. Revenue forecasts rose from $14.93 billion to $19.12 billion. The price-to-earnings ratio was compiled at 22.3x.

Wall Street's investment opinion is "Buy" with an average price target of $260.04. Bernstein raised its price target to $325 and maintained its "Outperform" rating. CLSA issued a "Hold" rating with a price target of $145. RBC Capital maintained its "Sector Perform" rating and a price target of $190.

Oracle also holds a significant weight in major technology exchange-traded funds. Its weight in IGV is 5.87%, in TDIV 5.21%, and in TRFK 7.57%. Inflows and outflows of funds in these ETFs can lead to automatic buying and selling of Oracle shares.

[Key Article Summary]

-Oracle rose 5.94% on Monday, expanding its artificial intelligence collaboration with Google Cloud.

-The market expects September quarterly revenue to increase from $14.93 billion in the same period last year to $19.12 billion.

-Wall Street's average price target is $260.04, with Bernstein suggesting a high of $325.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*