Jump to content

NYSE: Buy the dip on Oracle shares?


MongiIG

Recommended Posts

Having come close to their June all-time high, Oracle shares dropped heavily on disappointing earnings but remain in a long-term uptrend.

NYSESource: Bloomberg
 

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 13 September 2023 16:41

Oracle shares drop but revenue from cloud services increased by 30%

Oracle’s earnings were a classic demonstration of ‘buy the rumour, sell the fact’, as well as the old adage that ‘it is better to travel than to arrive’. After a huge rally this year, the stock saw significant profit-taking following its results.

Oracle's shares dropped on Tuesday after the company reported first-quarter (Q1) results and revenue predictions that were lower than expected. The company's stock fell over 13% as a reaction to high expectations of its performance.

Oracle, a leading company in database software and cloud computing, reported on Monday that its adjusted earnings for the first quarter, ending August 31, increased by 16% compared to the previous year, reaching $1.19 per share. The company′s revenue rose by $12.45 billion.

Analysts had anticipated Oracle to have adjusted earnings of $1.15 per share on revenue of $12.45 billion, as per FactSet.

After the report was published, Oracle CEO Safra Catz gave a forecast for the current quarter that was lower than what analysts had predicted. The company expects to earn $1.32 per share for the current quarter, with a revenue growth of 6% at the midpoint of the company's range.

Oracle's (ORCL) stock fell to $109.62, marking a 13.5% loss in the stock market today. The disappointing earnings report from the company also negatively affected similar stocks.

Revenue from Oracle's cloud services increased by 30% to 4.6billion, compared to $41.5 billion for the Q1.

However, the company's older business lines continued to have difficulties. The revenue from cloud license and on-premises license fell by 10% to $800 million.

Technical analysis on the Oracle share price

Oracle’s share price, which year-to-date has risen by over 32% despite this week’s sharp sell-off, came very close to its June $127.54 record high on Monday when it hit $127.42.

Oracle Weekly Candlesticks Chart

Oracle Weekly candlesticks chartSource: Tradingview

The sharp drop in the Oracle share price has been seen by some as an opportunity to buy the share at discounted levels as it remains above its 2022-to-2023 uptrend line at $106.67. Together with the December 2021 peak at $106.34 it should act as good support.

As long as the $106.67-to-$106.34 support zone holds on a weekly chart closing basis, the long-term uptrend will remain intact.

If fallen through, however, the 200-day simple moving average (SMA) at $99.25 could be reached.

Oracle Daily Candlesticks Chart

Oracle daily candlesticks chartSource: Tradingview

This week’s huge $124.72 to $113.30 price gap is expected to at least partially get filled while the long-term uptrend line underpins. The 55-day SMA at $117.25 represents a possible upside target ahead of the July peak at $121.36.

Analysts’ recommendations and IG client sentiment

Fundamental analysts rate Oracle’s share price between a ‘buy’ and ‘hold’ with Refinitiv data showing 5 strong buys, 9 buys but 18 holds - with the median of estimates suggesting a long-term price target of $132.00 for the share, roughly 21% above the current price (as of 13/09/2023).

Oracle analystsSource: Refinitiv

IG sentiment data shows that 84% of clients with open positions on the share (as of 13/09/2023) expect the price to rise over the near term, while 16% of clients expect the price to fall. Trading activity over the last week shows 57% of buys and this month 54% of buys.

IG Oracle sentimentSource: IG

 

 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Binance റഫറൽ കോഡ് "ZNKAUKP3" എന്നത് ലോകത്തിലെ ഏറ്റവും വലിയ ക്രിപ്‌റ്റോകറൻസി പ്ലാറ്റ്‌ഫോമിലെ ഉപയോക്താക്കൾക്ക് അവരുടെ ഇടപാടുകളിൽ കൂടുതൽ നിയന്ത്രണം നേടാനും അവരുടെ ചലനങ്ങളുടെ വിശദമായ റെക്കോർഡ് നേടാനും ആഗ്രഹിക്കുന്ന ഒരു അത്യാവശ്യ ഉപകരണമാണ്. ബിനാൻസ് എക്സ്ചേഞ്ചിൽ, റഫറൽ കോഡിനും റഫറൽ ഐഡിക്കും ഒരേ അർത്ഥമുണ്ട്. നിലവിൽ, ബിനാൻസ് റഫറൽ ഐഡി "ZNKAUKP3" ആയി ഉപയോഗിക്കുന്നു. 20% കമ്മീഷൻ കിഴിവ് നിരക്കുള്ള, ആജീവനാന്ത സാധുതയുള്ള, ലോകത്ത് ഏറ്റവും കൂടുതൽ ഉപയോഗിക്കുന്ന Binance റഫറൽ ഐഡിയാണിത്. മത്സര നേട്ടം പുതിയ നിക്ഷേപകരെ ആകർഷിക്കുന്നതിനായി ക്രിപ്‌റ്റോകറൻസി എക്‌സ്‌ചേഞ്ചുകൾ റഫറൽ, അഫിലിയേറ്റ് പ്രോഗ്രാമുകൾ നടപ്പിലാക്കിയിട്ടുണ്ട്. Binance റഫറൽ ഐഡി "ZNKAUKP3" എന്ന പേരിൽ ജനപ്രിയമായതിനാൽ, നിങ്ങൾക്ക് 20% ആജീവനാന്ത കമ്മീഷൻ കിഴിവും 600 USDT സൈൻ-അപ്പ് ബോണസും ലഭിക്കും. ഈ വാചകം പോലെയുള്ള ഉള്ളടക്കം തയ്യാറാക്കുന്നതിലൂടെ, ഉയർന്ന മത്സരാധിഷ്ഠിത നേട്ടത്തിൽ നിന്ന് നിങ്ങൾക്ക് വരുമാനം നേടാനും കഴിയും.
    • លេខកូដយោង Binance "ZNKAUKP3" គឺជាឧបករណ៍សំខាន់មួយសម្រាប់អ្នកប្រើប្រាស់នៅលើវេទិកា cryptocurrency ដ៏ធំបំផុតរបស់ពិភពលោក ដែលចង់ទទួលបានការគ្រប់គ្រងបន្ថែមទៀតលើប្រតិបត្តិការរបស់ពួកគេ និងទទួលបានកំណត់ត្រាលម្អិតនៃចលនារបស់ពួកគេ។ នៅក្នុងការផ្លាស់ប្តូរ Binance លេខកូដយោង និងលេខសម្គាល់យោងមានអត្ថន័យដូចគ្នា។ បច្ចុប្បន្ន លេខសម្គាល់យោង Binance ត្រូវបានប្រើជា "ZNKAUKP3" ។ វាគឺជាលេខសម្គាល់ការបញ្ជូនបន្ត Binance ដែលត្រូវបានប្រើប្រាស់ច្រើនជាងគេបំផុតនៅក្នុងពិភពលោក ដែលមានសុពលភាពសម្រាប់ជីវិត ជាមួយនឹងអត្រាបញ្ចុះតម្លៃកំរៃជើងសារ 20%។ គុណសម្បត្តិប្រកួតប្រជែង ការផ្លាស់ប្តូរ Cryptocurrency បានអនុវត្តកម្មវិធីបញ្ជូនបន្ត និងសម្ព័ន្ធដើម្បីទាក់ទាញអ្នកវិនិយោគថ្មី។ ចាប់តាំងពីលេខសម្គាល់ការបញ្ជូនបន្ត Binance បានក្លាយជាការពេញនិយមជា "ZNKAUKP3" អ្នកអាចទទួលបានការបញ្ចុះតម្លៃកំរៃជើងសារពេញមួយជីវិត 20% និងប្រាក់រង្វាន់សម្រាប់ការចុះឈ្មោះ 600 USDT ។ តាមរយៈការរៀបចំខ្លឹមសារដូចអត្ថបទនេះ អ្នកក៏អាចរកប្រាក់ចំណូលបានពីអត្ថប្រយោជន៍ប្រកួតប្រជែងខ្ពស់។
    • Binance रेफरल ID "ZNKAUKP3" विश्वको सबैभन्दा ठूलो क्रिप्टोकरेन्सी प्लेटफर्मका प्रयोगकर्ताहरूका लागि आवश्यक उपकरण हो जसले आफ्नो लेनदेनमा थप नियन्त्रण प्राप्त गर्न र तिनीहरूको चालहरूको विस्तृत रेकर्ड प्राप्त गर्न चाहन्छ। Binance विनिमय मा, रेफरल कोड र रेफरल ID को समान अर्थ छ। हाल, Binance रेफरल आईडी "ZNKAUKP3" को रूपमा प्रयोग गरिन्छ। यो संसारमा सबैभन्दा बढी प्रयोग हुने Binance रेफरल ID हो, जीवनभरको लागि मान्य, २०% कमीशन छुट दरको साथ। प्रतिस्पर्धात्मक लाभ क्रिप्टोकरेन्सी एक्सचेन्जहरूले नयाँ लगानीकर्ताहरूलाई आकर्षित गर्न सन्दर्भ र सम्बद्ध कार्यक्रमहरू लागू गरेका छन्। Binance रेफरल ID "ZNKAUKP3" को रूपमा लोकप्रिय भएको कारणले, तपाईंले 20% आजीवन कमीशन छुट र 600 USDT साइन-अप बोनस प्राप्त गर्न सक्नुहुन्छ। यस पाठ जस्तो सामग्री तयार गरेर, तपाइँ उच्च प्रतिस्पर्धात्मक लाभबाट पनि आम्दानी गर्न सक्नुहुन्छ।
×
×
  • Create New...
us