Colin Laidley
1 min read
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Software company Oracle (ORCL) is scheduled to report fiscal fourth-quarter earnings after the bell on Wednesday, and traders see potential for the stock to hit a record high on the results.
Oracle shares are expected to move about 7.2% in either direction by the end of the week, according to options pricing data. That would put shares at about $190, their highest price this year and just 1% shy of a record, or about $164, which would erase the stock’s gains so far this month.
Oracle stock has climbed steadily in recent weeks as investors have embraced the AI trade amid waning economic uncertainty. Shares are up about 45% since hitting a year-to-date low in mid-April, and about 7% since the start of the year.
Oracle shares have moved an average of 8.6% the day after its four most recent earnings reports. Oracle has missed sales and adjusted earnings estimates in each of its last two reports, causing shares to fall 3.1% after earnings in March and 6.7% in December. Shares jumped double digits in the two prior quarters after announcing cloud computing deals with Amazon (AMZN), Microsoft (MSFT), OpenAI, and Alphabet’s (GOOGL) Google.
Wall Street is split on the outlook for Oracle stock. Of the 13 Oracle analysts tracked by Visible Alpha, 6 recommend buying the stock and 7 have assigned it a “hold” rating. The average price target of $174.42 is about 2% below the stock’s closing price on Tuesday.
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