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Co-Authored by Noah Cox and Brock Heilig
Investment Thesis
Oracle Corporation (NYSE:ORCL) shares are down more than 16% in the last ~90 days since I wrote about the company in mid-December. Although shares are
Oracle Earnings Review: Strong Guidance With AGI
Summary
- Oracle's AI Cloud demand is surging, presenting huge potential for long-term growth, despite a recent 16% drop in share price.
- Oracle's Q3 earnings showed minor EPS and revenue misses, but strong cloud revenue growth and promising future guidance reinforce my bullish stance.
- Valuation metrics suggest Oracle is undervalued; I believe shares should trade at a 20% premium to the sector median forward P/E ratio.
- Despite potential risks in AI growth, Oracle's strong positioning in AI and strategic partnerships make shares a strong buy with over 16% upside.
This account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in a business model that will cause a stock to change dramatically. Associated with SA contributor Elijah Buell.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Noah Cox (main account author) is the managing partner of Noah’s Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.
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