What Analysts Are Saying After Oracle’s Results Underwhelmed Investors | Global News Avenue

Oracle (ORCL) Cloud company’s stock price plummeted after the release of financial results second quarter revenue It missed Wall Street expectations, but analysts were mixed on its future.

Citi analysts said they “still don’t see meaningful growth in total cloud revenue,” which rose 24% year over year to $5.9 billion, driving “modest estimate revisions.” The company maintained a “neutral” rating but raised its price target to $194. Oracle shares are trading at a premium of nearly 10% after falling 8% to $176.80 on Monday.

Deutsche Bank maintained a “buy” rating and a $200 price target. Oracle delivers “very solid second-quarter results that prompt a second look,” thanks to both parties Artificial Intelligence (AI) and the success of non-artificial intelligence.

Oppenheimer maintained a “perform” rating, saying Oracle’s results were “less impressive than recent quarters” but also cited “strong growth” in the company’s Oracle Cloud Infrastructure (OCI) distribute.

Oracle deepens artificial intelligence relationship with Meta

Notably, OCI’s revenue grew 52% to $2.4 billion, beating the company’s expectations. The company announced an expanded partnership with Meta (Mehta), the two companies will use Oracle’s AI cloud infrastructure to develop AI agents based on Meta’s Llama large language model.

“On the AI ​​side, we are impressed by news of Meta as a new customer,” Deutsche Bank analysts wrote.