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Oracle Corporation (ORCL) Stock

Oracle Corporation Stock Details, Movements and Public Alerts

Oracle Stock: The Database Giant's Stunning Cloud Comeback in 2025

Discover why Oracle (ORCL) has engineered one of tech's greatest comeback stories by transforming from legacy database vendor to cloud infrastructure powerhouse. This comprehensive analysis explores how Larry Ellison's obsession with autonomous technology and strategic partnerships with Microsoft and Google has reignited growth, examining the multi-cloud opportunity, the AI infrastructure boom, and why Wall Street is finally believing.

  • Core Strengths:Database monopoly in enterprises, accelerating cloud growth (45%+ annually), multi-cloud partnerships
  • Main Risks:Still behind AWS/Azure in scale, aggressive accounting reputation, key person risk with Larry Ellison
  • Bottom Line:The cloud turnaround is real - Oracle is becoming a credible third option in cloud infrastructure

Market Cap

$590.53B

52-Week High

$251.60

-2.57% from high

52-Week Low

$118.18

+107.43% from low

Avg Daily Volume

11,443,507

100-day average

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

48.55

Above market average

Forward P/E

31.15

Earnings expected to grow

PEG Ratio

2.19

Potentially overvalued

Price to Book

28.88

EV/EBITDA

28.58

EPS (TTM)

$4.33

Price to Sales

10.29

Beta

1.32

Similar volatility to market

How is ORCL valued relative to its earnings and growth?
Oracle Corporation trades at a P/E ratio of 48.55, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 31.15 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.19 indicates a premium valuation even accounting for growth.
What is ORCL's risk profile compared to the market?
With a beta of 1.32, Oracle Corporation is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 28.88 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

21.70%

Operating Margin

32.50%

Return on Equity

82.40%

Return on Assets

7.26%

Revenue Growth (YoY)

11.30%

Earnings Growth (YoY)

7.30%

How profitable and efficient is ORCL's business model?
Oracle Corporation achieves a profit margin of 21.70%, meaning it retains $21.70 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 32.50% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 82.40% and ROA at 7.26%, the company generates strong returns on invested capital.
What are ORCL's recent growth trends?
Oracle Corporation's revenue grew by 11.30% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 7.30% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against SERVICES-PREPACKAGED SOFTWARE industry averages for proper context.

Dividend Information

Dividend Per Share

$1.80

Dividend Yield

0.95%

Ex-Dividend Date

7/10/2025

Dividend Date

7/24/2025

What dividend income can investors expect from ORCL?
Oracle Corporation offers a dividend yield of 0.95%, paying $1.80 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 7/10/2025.
How reliable is ORCL's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Oracle Corporation pays $1.80 per share in dividends against earnings of $4.33 per share, resulting in a payout ratio of 41.57%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for 7/24/2025.

Company Size & Market

Shares Outstanding

2.81B

Book Value/Share

$7.29

Asset Type

Common Stock

What is ORCL's market capitalization and position?
Oracle Corporation has a market capitalization of $590.53B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 2.81B shares outstanding, the company's ownership is widely distributed. As a major player in the SERVICES-PREPACKAGED SOFTWARE industry, it competes with other firms in this sector.
How does ORCL's price compare to its book value?
Oracle Corporation's book value per share is $7.29, while the current stock price is $245.14, resulting in a price-to-book (P/B) ratio of 33.63. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$213.50

12.91% downside potential

Analyst Recommendations

Strong Buy

4

Buy

20

Hold

15

Sell

0

Strong Sell

0

How reliable are analyst predictions for ORCL?
39 analysts cover ORCL with 62% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $213.50 implies -12.9% downside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on ORCL?
Current analyst recommendations:4 Strong Buy, 20 Buy, 15 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 04:41 AM

Earnings Dates

Upcoming Earnings

Q3

Sep 8, 2025

Est. EPS: $2.11

In 44 days

Technical Indicators

RSI (14-day)

79.25

Overbought

50-Day Moving Average

$155.32

57.83% above MA-50

200-Day Moving Average

$163.89

49.58% above MA-200

MACD Line

13.82

MACD Signal

9.73

MACD Histogram

4.09

Bullish

What does ORCL's RSI value tell investors?
The RSI (Relative Strength Index) for ORCL is currently 79.25, indicating the stock is in overbought territory (above 70). This suggests strong recent buying pressure that may be unsustainable. While overbought conditions can persist in strong trends, traders often watch for RSI divergences or a drop below 70 as potential sell signals. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret ORCL's MACD and moving average crossovers?
MACD analysis shows the MACD line at 13.82 above the signal line at 9.73, with histogram at 4.09. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($155.32) is below the 200-day MA ($163.89), forming a death cross pattern that often warns of extended weakness. Price is currently above both MAs, confirming strength.

Indicators last updated: Jun 18, 2025, 12:32 AM

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Oracle Stock: The Database Giant's Stunning Cloud Comeback in 2025 - Complete Analysis & Investment Guide

Discover why Oracle (ORCL) has engineered one of tech's greatest comeback stories by transforming from legacy database vendor to cloud infrastructure powerhouse. This comprehensive analysis explores how Larry Ellison's obsession with autonomous technology and strategic partnerships with Microsoft and Google has reignited growth, examining the multi-cloud opportunity, the AI infrastructure boom, and why Wall Street is finally believing.

Oracle Stock: The Database Giant's Stunning Cloud Comeback in 2025

The Unlikely Cloud Contender

Forget everything you think you know about Oracle being a dying legacy software company. While investors wrote off Larry Ellison's empire as yesterday's technology, Oracle has quietly engineered one of the most impressive transformations in enterprise software history. The company that once fought cloud computing is now growing its cloud infrastructure business at 45% annually - faster than Amazon's AWS or Microsoft's Azure. This isn't your father's database company anymore; it's a cloud infrastructure powerhouse hiding in plain sight.

Consider Oracle's masterstroke strategy: Instead of competing head-to-head with AWS and Azure, Oracle partnered with them. Oracle Database can now run natively in Azure datacenters. Oracle Cloud Infrastructure (OCI) interconnects directly with AWS. Even Google Cloud hosts Oracle workloads. By making Oracle Database - which runs 75% of the world's enterprise data - available everywhere, Ellison turned potential competitors into distribution partners. It's like Coca-Cola getting Pepsi to sell Coke in their vending machines.

The Autonomous Database represents Oracle's true innovation. While competitors offer databases you must manually tune, patch, and secure, Oracle's self-driving database handles everything automatically using machine learning. For enterprises spending millions on database administrators, this is revolutionary. Over 10,000 customers have adopted Autonomous Database, with consumption growing 50% year-over-year. At $30,000 minimum annual contracts, this single product could drive $10 billion in high-margin revenue.

Financial Renaissance in Progress

While Oracle may never match the growth rates of younger cloud natives, it has achieved something perhaps more impressive: reigniting growth after years of stagnation. The company's financial performance in fiscal 2024 marked an inflection point. Revenue reached $53 billion, up 8% year-over-year, but the real story lies beneath - cloud revenue surged 45% to $19 billion and now represents 36% of total sales, up from just 15% five years ago.

The company generated $18 billion in operating income and $14 billion in free cash flow, maintaining the cash generation that's made Oracle a dividend aristocrat. But unlike the past when Oracle returned everything to shareholders, the company is now investing aggressively in cloud infrastructure, spending $8 billion annually on new data centers. This investment is paying off - remaining performance obligations (future contracted revenue) reached $65 billion, up 29%, providing unprecedented visibility.

Oracle's dividend yields 1.2% with a payout ratio of 40%, leaving room for continued growth despite 15 consecutive years of increases. The company spent $13 billion on buybacks in 2024, reducing share count by 5%. But the real story is margin expansion - as cloud revenue grows and legacy support obligations decline, operating margins are expanding from 38% to a targeted 45% by 2026. This operational leverage means earnings should grow faster than revenue for years.

Valuation: Reasonable for Accelerating Growth

At first glance, Oracle's valuation appears reasonable. Trading at 28 times earnings, the stock sits below high-flying cloud peers like ServiceNow (60x) or Snowflake (negative earnings) while commanding a modest premium to mature tech stalwarts like IBM (20x) or SAP (25x). But this middle-ground valuation masks the transformation underway - Oracle is transitioning from a value stock to a growth story.

The reasonable valuation reflects lingering skepticism about Oracle's cloud ambitions. Many investors remember years of false starts and aggressive accounting that obscured weak organic growth. But the numbers don't lie - cloud infrastructure revenue of $5.8 billion is growing 45% annually with 30%+ operating margins. NetSuite, Oracle's cloud ERP for mid-market companies, generates $3 billion growing 20% annually. Fusion Applications for enterprises approaches $5 billion growing 35%. This isn't financial engineering; it's real product-market fit.

The multi-cloud partnerships fundamentally change Oracle's growth trajectory. By running Oracle Database inside AWS, Azure, and Google Cloud, Oracle captures revenue without the infrastructure investment. These partnerships, signed in 2023-2024, are just beginning to contribute. As enterprises realize they can keep Oracle Database while modernizing to the cloud, a $100 billion upgrade cycle begins. At 28 times earnings for a company inflecting to sustainable double-digit growth, Oracle looks undervalued.

Oracle's fortress balance sheet provides additional comfort. With $30 billion in debt against reliable cash flows, leverage sits at a comfortable 2x EBITDA. The company generates enough cash to fund growth investments, pay dividends, buy back shares, and still strengthen the balance sheet. This financial flexibility allows Oracle to play offense while competitors struggle with profitability.

Opportunities for 2025 and Beyond

1. The AI Infrastructure Gold Rush

While everyone focuses on AI models and applications, Oracle is selling the picks and shovels - the infrastructure to train and run AI. Oracle Cloud Infrastructure (OCI) offers something unique: bare metal servers with ultrafast networking optimized for AI workloads at prices 50% below AWS. This has attracted AI pioneers like Nvidia (which uses OCI for chip development) and Cohere (which trains large language models exclusively on Oracle).

The $104 billion Stargate AI infrastructure project announced with OpenAI and SoftBank validates Oracle's AI credentials. As enterprises move from experimenting with ChatGPT to building proprietary AI models, they need massive computing power and specialized databases for vector embeddings. Oracle's HeatWave MySQL can process AI workloads 10x faster than alternatives. With AI infrastructure spending projected to reach $200 billion by 2027, even 10% market share represents transformative growth.

2. Healthcare's Digital Transformation

The $28 billion Cerner acquisition initially puzzled investors, but the strategic logic is becoming clear. Oracle now provides the complete technology stack for healthcare - from hospital electronic health records (Cerner) to clinical trials (Oracle Health Sciences) to backend operations (Oracle Cloud). As healthcare digitizes and AI transforms diagnostics, Oracle's integrated platform becomes indispensable. Cerner alone serves 25% of US hospitals.

The opportunity extends beyond selling software to transforming healthcare delivery. Oracle is building a national health records network where patient data flows seamlessly between providers. Imagine changing doctors without filling out forms or repeating tests. With healthcare representing 20% of GDP and digitization in early innings, Oracle's healthcare cloud could become a $20 billion business. Early customer wins at major health systems validate the vision.

3. The Multi-Cloud Reality

Enterprises don't want vendor lock-in, creating the multi-cloud opportunity Oracle is uniquely positioned to capture. While AWS makes it expensive to move data out and Azure ties you to Microsoft's ecosystem, Oracle embraces openness. OCI Dedicated Region lets enterprises run Oracle's cloud in their own data centers. Database@Azure runs Oracle Database natively in Microsoft's cloud. These hybrid deployments generate recurring revenue without Oracle building expensive infrastructure.

The financial implications are staggering. If just 20% of Oracle's 500,000 database customers adopt multi-cloud deployments at $500,000 average annual contracts, that's $25 billion in incremental high-margin revenue. Early adoption suggests this is conservative - enterprises are desperate for database flexibility. As data gravity keeps workloads near Oracle databases, adjacent cloud services follow. This creates a virtuous cycle where Oracle benefits from overall cloud growth regardless of which vendor technically wins.

Risks You Should Know

1. Execution Credibility Gap

  • History of aggressive accounting and acquisition integration failures
  • Cloud infrastructure still subscale versus AWS/Azure/Google
  • Customer skepticism after years of forced upgrades and audits

2. Competitive Dynamics Intensifying

  • MongoDB and Snowflake attacking database monopoly
  • AWS building Oracle-compatible Aurora database
  • Microsoft SQL Server gaining share in the cloud

3. Leadership Transition Concerns

  • Larry Ellison is 80 years old with no clear successor
  • Safra Catz (CEO) lacks technical vision without Ellison
  • Culture depends heavily on founder's aggressive style

Who Is Oracle Stock Suitable For?

Perfect For

  • Value investors seeking cloud transformation stories
  • Contrarian investors betting against consensus
  • Income investors wanting growing dividends
  • Tech investors seeking reasonable valuations

Less Suitable For

  • Growth purists wanting 50%+ revenue growth
  • ESG-focused investors (governance concerns)
  • Investors uncomfortable with aggressive accounting

Practical Buying Strategy

For investors convinced of Oracle's cloud transformation, the question becomes not whether to buy, but how to approach building a position. Oracle stock tends to be volatile around earnings as investors debate whether cloud growth is sustainable. Setting entry targets during pessimistic moments when cloud growth "merely" hits 30% versus 40% expectations provides attractive risk-reward. The stock often dips 10-15% on such concerns before recovering.

Dollar-cost averaging represents perhaps the optimal strategy for most retail investors given Oracle's transformation timeline. By investing a fixed amount monthly, investors can build positions while the cloud transition plays out over several years. The growing dividend provides income while you wait, and Oracle's buyback program creates a rising floor. Given management's aggressive capital allocation, patience gets rewarded.

More sophisticated investors might consider using options to enhance returns. Selling cash-secured puts at strike prices 15% below market can generate 5-6% annualized income while waiting for better entry points. Alternatively, selling covered calls 10% above your purchase price on rallies can generate extra income while maintaining upside participation. Oracle's volatility makes option premiums attractive while the business transformation provides fundamental support.

The Bottom Line: Transformation Story Worth Believing

Oracle represents a unique investment proposition - a left-for-dead tech giant engineering a remarkable comeback through cloud infrastructure and strategic partnerships. Like a championship boxer making one last run at the title, Oracle combines the cunning of experience with surprising vitality. The stock won't make anyone rich overnight, but it offers an attractive risk-reward for patient investors.

The investment case ultimately rests on whether you believe Oracle can sustain 30%+ cloud growth while maintaining its database dominance. If enterprises truly adopt multi-cloud strategies and AI drives massive infrastructure investment, Oracle's unique positioning could drive another decade of growth. Under Larry Ellison's relentless leadership and with credible cloud products finally delivering, betting against Oracle has become dangerous. The transformation from legacy vendor to cloud contender is further along than most realize.

Conclusion

Oracle offers the best risk-reward in large-cap enterprise software. The cloud transformation is real, growth is accelerating, and the valuation remains reasonable. While execution risk exists, the multi-cloud strategy and AI infrastructure opportunity provide multiple paths to success.

2025 Price Target
$140-160 (+20-35%)
Risk
Moderate (transformation story)
Recommendation
Buy on any weakness below $120

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