Latest news with #BradReback
Yahoo
3 days ago
- Business
- Yahoo
Analyst Explains How Oracle's (ORCL) Rising CapEx Will Result in ‘Accelerating' Revenue Growth
Oracle Corp (NYSE:ORCL) is one of the . Brad Reback, Stifel managing director, in a latest program on CNBC talked about his latest take on Oracle Corp (NYSE:ORCL) and explained why he's bullish on the company. The analyst believes Oracle Corp (NYSE:ORCL) increasing spending will pay off mainly due to AI and Cloud. 'We think there's plenty left in front of us. And really what got us over the hump here is the capex spending over the last couple of quarters had meaningfully accelerated, and our concern was that they weren't going to be able to keep pace with the likes of the other hyperscalers. But with nine billion of spend in the last quarter, with capex expected to be up 4x this year from two years ago, it's very clear they're spending and that their backlog should convert into accelerating revenue growth here in the coming quarters, well on their way to getting to 20% revenue growth next fiscal year.' Asked about the specific areas of potential growth for Oracle Corp (NYSE:ORCL), here is what the analyst said: 'It's definitely the cloud, and that's a combination of, as you just mentioned, cloud infrastructure, which is existing customers moving their Oracle databases to the cloud, be it Oracle's cloud or Oracle running inside of hyperscaler clouds, and then increasingly AI. And then beyond that, they have a really significant level of SaaS apps that continue to grow at 20%. So when you bring it all together, Oracle's cloud, which is approaching more — which is more than the majority of the revenue right now — is growing 40% year-over-year this year, expected, and should continue to sustain that pace going forward.' Photo by Austin Distel on Unsplash ClearBridge Dividend Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its second quarter 2025 investor letter: 'Of course, what makes the ClearBridge Dividend Strategy unique is that we do not just invest in dividend stalwarts in communications services, energy, health care and consumer staples. Our flexible approach to dividends enables us to invest in stocks with lower upfront yields, provided they offer compelling risk/rewards and the companies can significantly grow their dividends. This is how we got to own Broadcom and Oracle Corporation (NYSE:ORCL), two of the best AI plays around, (in addition to Apple, Microsoft, Visa and others). But, unlike today, we built our positions in Broadcom and Oracle when their stocks embedded weak outlooks, not meteoric expectations (Exhibit 2). While we acknowledge the potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
01-07-2025
- Business
- Yahoo
Stifel Boosts Oracle (ORCL) Price Target to $250 on Cloud Growth
Oracle Corporation (NYSE:ORCL) is one of the . On June 30, Stifel upgraded the stock to 'Buy' from hold and raised its price target to $250 from $180. The firm said in its upgrade of Oracle that it sees cloud acceleration. Analyst Brad Reback quoted the company's recent dramatic increase in capital expenditure and RPO (Remaining Performance Obligation) gains, which back growth expectations of the management for the company's Cloud Infrastructure and SaaS-Apps businesses. These gains should generate accelerating revenue increases in the coming years, the firm noted. Even though the higher capital spending will lead to additional near-term gross-margin compression, the analyst added that there is 'no question this management team is extremely adept at managing expenses.' They believe that sustainable Cloud growth and operating expense discipline should allow Oracle to overcome the revenue mix shift headwinds and support accelerating EPS growth in FY27 and beyond. 'While Oracle continues to benefit from escalating Infrastructure demand, we remain more cautious due to FCF implications given the company's need for significant capital investment to sustain this growth.' While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and Disclosure: None.
CNBC
30-06-2025
- Business
- CNBC
Stifel upgrades Oracle: Cap ex will convert to revenue in coming quarters
Brad Reback, Stifel managing director, joins 'Power Lunch' to discuss Reback's thoughts on Oracle's stock, if it's not too late to invest in the company and much more.
Yahoo
30-06-2025
- Business
- Yahoo
Oracle stock set to notch fresh record after disclosing multiple cloud services deals
Oracle stock (ORCL) jumped more than 5% midday Monday and was on track to hit a record closing high after the software giant disclosed that it inked new multibillion-dollar cloud services agreements. In a filing to the US Securities and Exchange Commission, the company provided commentary that CEO Safra Catz planned to share with other Oracle colleagues on Monday. 'Oracle is off to a strong start in FY26,' Catz's statement read. 'Our MultiCloud database revenue continues to grow at over 100%, and we signed multiple large cloud services agreements including one that is expected to contribute more than $30 billion in annual revenue starting in FY28.' Read more about Oracle's stock moves and today's market action. In its 2025 fiscal year, which ended May 31, Oracle's revenue from its cloud services business amounted to $24.5 billion, and total revenue was $57.4 billion. Oracle shares jumped as much as 8.6% to an intraday high of $228. Despite paring gains, Oracle stock was set to hit a record close above its previous one last week of just over $215. Shares have climbed more than 33% over the past month, ahead of the tech-heavy Nasdaq's (^IXIC) 6.4% gain. Oracle's jump on Monday also follows a note from Stifel analyst Brad Reback upgrading the stock to Buy from Hold. Reback raised his price target on Oracle shares to $250 from $180, citing momentum in its cloud business. Reback wrote, 'Cloud gains should generate accelerating total revenue increases in coming years.' The company partnered with OpenAI ( and SoftBank (SFTBY) to launch the highly publicized $500 billion Stargate project to build out US AI data centers earlier this year, but the project has stalled. Reback wrote that 'while Oracle's expanding relationship with OpenAI is expected to contribute to Cloud growth going forward, management has indicated that potential revenue from the Stargate project would be incremental to current total Oracle revenue growth expectations.' Like other Big Tech hyperscalers, Oracle has ramped up its spending to build out data centers to power artificial intelligence. Oracle's capital expenditures soared from $6.9 billion in its 2024 fiscal year to $21.2 billion in 2025 and are expected to rise to over $25 billion in the current year. Still, it's spending much less than other tech firms. 'While the higher capital spending will lead to additional near-term gross-margin compression, there is no question this management team is extremely adept at managing expenses,' Reback wrote. But just as Oracle touched new highs, lauded short seller Jim Chanos warned that the wider ecosystem of AI stocks could be nearing a pullback, likening the surge in AI stocks to the dot-com bubble. 'There is an ecosystem around the AI boom that is considerable as there was for TMT [technology, media, and telecommunications] back in '99 and 2000,' Chanos told Bloomberg in an interview published Monday. 'But it is a riskier revenue stream because if people pull back, they can pull back capex very easily. Projects can get put on hold for six months or nine months, and that immediately shows up in disappointing revenues and earnings forecast if it happens.' 'We're not there yet, but that's one of the risks out there that I think a lot of people are underestimating,' he said. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Sign in to access your portfolio
Business Insider
30-06-2025
- Business
- Business Insider
Oracle upgraded to Buy from Hold at Stifel
Stifel analyst Brad Reback upgraded Oracle (ORCL) to Buy from Hold with a price target of $250, up from $180. Don't Miss TipRanks' Half Year Sale Take advantage of TipRanks Premium for 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
