Oracle stock surges 12.6% ahead of earnings on OpenAI deal buzz

Morgan Stanley raised its price target for Oracle to $210 from $207 while keeping a neutral rating, suggesting around 30% potential upside. Analysts expect first-quarter fiscal revenue to rise 28% to $19.13 billion, which would be the companys fastest growth since at least 2017.

Investors will closely watch Oracle’s cloud infrastructure growth, which increased 93% last quarter, along with its $638 billion remaining performance obligation backlog. Investor sentiment has also turned more positive ahead of the September 10 earnings announcement.

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Investors will closely watch Oracle’s cloud infrastructure growth, which jumped 93% in the latest quarter. They will also look at whether Oracle can maintain this growth as it adds new AI data centre capacity.

Another key focus will be Oracle’s $638 billion remaining performance obligation (RPO) backlog, which has grown rapidly due to large AI contracts. Investors will want to know how quickly this backlog turns into actual revenue and how much of it comes from new demand.

One analyst said Oracle appears close to a breakout and may need only a final push. The analyst noted that Friday’s options expiry kept the stock below $160.

The analyst expects Oracle shares to rise above that level next week if the company’s earnings are not disappointing. The analyst believes the stock could reach $180 or more and is targeting $230 or higher by the end of the year.

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