Oracle shares head lower, forecasts disappoint
Oracle shares continue to slip after the company’s forecasts fell below Wall Street targets. IGTV’s @AngelineOng reports on how investors need to balance this with a potential AI lift ahead.
(Video Transcript)
Watching Oracle like a hawk
Oracle shares have been falling quite rapidly. Let us show you the all-sessions reading on our IG chart here. As you can see there, we had a huge drop there in the previous session, and then the all-sessions, right as we speak, are down 1.2%.
This is after the cloud services provider said it was forecasting current quarter revenues below target, and the company also narrowly missed first-quarter expectations. What is interesting is that this company actually had a really good run during Covid, during lockdown.
'Working-from-home' has hurt Oracle
And what's happened now is that as businesses are rethinking their workspaces and their sort of hybrid or work-from-home-type policies and digitisation plans. This is hurting Oracle as it plays catch-up in a segment that is dominated by bigger rivals like Amazon, web services, while Microsoft is another very big player.
Don't forget there are many other contenders coming into this market. However, analysts still say that the adoption of artificial intelligence (AI) is going to boost Oracle's cloud-infrastructure business. And this is what perhaps there wasn't enough of. We didn't get enough comments about how this cloud-infrastructure business and the revenue streams were going to work out for Oracle.
Competitive threat from other contenders
But what's also interesting, looking at a longer-term chart, because from if we take a look at this point here, and we give you a year-to-date chart, Oracle shares have gained some 50.5%. That's more than 50%. But if we move that slightly lower to see the effects of this here, then we can see that it's quite a mark fall there, because it brings that year-to-date figure down to up 40%.
As I mentioned earlier, we're keeping a close eye on the shares for you of Oracle as it is an all-session stock on 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.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
