Oracle Corp (NYSE: ORCL) tanked about 9.0% in extended hours even though it reported better-than-expected per-share earnings for its second financial quarter.
Why is Oracle stock down in after-hours?
The stock is being punished primarily because the quarterly revenue came in shy of Street estimates.Oracle said its revenue from cloud and on-premise licenses, cloud services and license support, and services – all fell short of experts’ forecast in Q2. John DiFucci – a Guggenheim analyst recently told clients in a research note:
Oracle is not immune to the macro backdrop – no one is – but partner checks indicated a surprising resiliency in this business relative to others.
He sees upside in the tech stock to $150 which suggests close to a 45% upside from here.
“Oracle’s behind there’s no question. They’re behind in the cloud which makes them behind in AI,” Jefferies analyst Brent Thill$ORCL $NOW #AI $MSFT $AMZN @JonFortt pic.twitter.com/pavGeqMfaU
— CNBCOvertime (@CNBCOvertime) December 11, 2023
Notable figures in Oracle Q2 earnings release
Oracle expanded its cloud collaboration with Microsoft Corp in its fiscal Q2. Its cloud infrastructure revenue popped 52% year-on-year to $1.60 billion in the recently concluded quarter. In his recent interview with CNBC, Sarat Sethi – Managing Director of DCLA said:
Cloud acceleration and [then] acquisition of Cerner will be another leg of growth. Stock trades at high teens multiple. People think of it as an old-time stock, but it does have growth and it’s fairly priced.
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