Latest news with #ORCL
Yahoo
4 days ago
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Apple should acquire Perplexity AI to boost AI strategy, says Wedbush
-- Apple Inc. (NASDAQ:AAPL) should acquire Perplexity AI Inc. to strengthen its artificial intelligence offerings, according to Wedbush analyst Daniel Ives, who called the potential acquisition a "no brainer." Ives highlighted that major tech companies including Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), OpenAI, and Oracle (NYSE:ORCL) are engaged in an "arms race" to monetize AI, which he described as "the biggest tech trend in the last 50 years." Meanwhile, Apple appears to be falling behind in this technological revolution despite having "the biggest and most entrenched consumer installed base in the world with 2.4 billion iOS devices and 1.5 billion iPhones," Ives noted. The analyst pointed to Apple's disappointing internal efforts to develop Apple Intelligence and the lack of significant AI announcements at this year's Worldwide Developers Conference (WWDC), which he said "massively disappointed investors and most importantly developers." Ives suggested that Apple's traditional approach of developing technology internally may no longer be sufficient in the rapidly evolving AI landscape. "The time has come Apple needs to acquire Perplexity to significantly boost its AI platform," he wrote. Perplexity, an AI search engine currently valued at approximately $14 billion, could "redefine Apple's AI strategy and would fit in very well with Siri," according to Ives. He estimated that Apple might need to pay around $30 billion for the acquisition, which he described as "a drop in the bucket relative to the monetization opportunity." The analyst also noted that such a move could help Apple address both offensive and defensive strategies related to the ongoing Google search trial. Apple's largest acquisition to date was its $3 billion purchase of Beats in 2014. Related articles Apple should acquire Perplexity AI to boost AI strategy, says Wedbush JP Morgan upgrades Bloom Energy on restored fuel cell tax credit Cruise stocks Q2 earnings: Analyst says this name will deliver a beat and raise Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
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Apple should acquire Perplexity AI to boost AI strategy, says Wedbush
-- Apple Inc. (NASDAQ:AAPL) should acquire Perplexity AI Inc. to strengthen its artificial intelligence offerings, according to Wedbush analyst Daniel Ives, who called the potential acquisition a "no brainer." Ives highlighted that major tech companies including Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), OpenAI, and Oracle (NYSE:ORCL) are engaged in an "arms race" to monetize AI, which he described as "the biggest tech trend in the last 50 years." Meanwhile, Apple appears to be falling behind in this technological revolution despite having "the biggest and most entrenched consumer installed base in the world with 2.4 billion iOS devices and 1.5 billion iPhones," Ives noted. The analyst pointed to Apple's disappointing internal efforts to develop Apple Intelligence and the lack of significant AI announcements at this year's Worldwide Developers Conference (WWDC), which he said "massively disappointed investors and most importantly developers." Ives suggested that Apple's traditional approach of developing technology internally may no longer be sufficient in the rapidly evolving AI landscape. "The time has come Apple needs to acquire Perplexity to significantly boost its AI platform," he wrote. Perplexity, an AI search engine currently valued at approximately $14 billion, could "redefine Apple's AI strategy and would fit in very well with Siri," according to Ives. He estimated that Apple might need to pay around $30 billion for the acquisition, which he described as "a drop in the bucket relative to the monetization opportunity." The analyst also noted that such a move could help Apple address both offensive and defensive strategies related to the ongoing Google search trial. Apple's largest acquisition to date was its $3 billion purchase of Beats in 2014. Related articles Apple should acquire Perplexity AI to boost AI strategy, says Wedbush William Blair starts Wingstop at Outperform on steady growth, expansion JP Morgan upgrades Bloom Energy on restored fuel cell tax credit Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
5 days ago
- Business
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ORCL Stock Warning: Analysts Say Oracle May Need to Raise Cash Soon
Oracle (ORCL) is a provider of cloud-based solutions that touch database and middleware software, cloud infrastructure, infrastructure as a service, and software as a service. Oracle's stock is up 41% YTD after rallying close to 90% in the last 3 months. The stock easily outperforms the benchmark S&P 500 Index ($SPX), which has gained just under 6% YTD. Oracle's stock is also up 62% in the 52-week timeframe while trading at its all-time high. This Analyst Just Raised His Broadcom Stock Price Target by 70%. Should You Buy AVGO Now? 2 ETFs Offering Juicy Dividend Yields of 20% or Higher Why Alibaba Stock Looks Like a Screaming Buy After Falling 27% From Its 2025 Highs Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Barclays analyst Keith Bachman has issued a note to clients warning of Oracle's limited liquidity. The analyst has assigned a 'Outperform' rating to the tech giant, with a price target of $245, indicating upside of 5% from the current market level. Despite his rating and price target, Bachman is concerned about Oracle's future capital needs. The analyst pointed toward the company's increased expenditure pattern, as well as the cash it needs for dividends and planned share buybacks. He believes that Oracle might need to raise capital in the following years, most likely its fiscal 2026 or 2027. Bachman anticipates Oracle to further boost its artificial intelligence (AI) expenditure, which, coupled with its high-value debt maturity, indicates the company's need for close to $20 billion over the next two years. The analyst warns that despite the situation being manageable at present, several capital-raising events might hamper its earnings. Bachman anticipates Oracle's free cash flow could turn a negative $1 billion in FY26 and $100 million in FY27, far below consensus estimates of $213 billion and $1.957 billion, respectively. Bachman says that the company might look to raise $10 billion in FY26 and another $10 billion in FY27. This translates to a cost of $0.14 per share. Oracle's latest financial report came on June 11, when the company posted its fiscal fourth-quarter results showing a profit of $3.43 billion or $1.70 per adjusted share. The figure surpassed analysts' $1.64 per share estimate. Revenue for the quarter came to $15.9 billion again beating Wall Street's $15.54 billion estimate. The company's cloud services and license support segment contributed $11.7 billion, up 14%, while cloud infrastructure (OCI) revenue surged 52% to $3 billion, reflecting heightened demand for AI and multicloud solutions. Oracle's remaining performance obligations (RPO) climbed 41% to $138 billion, signaling strong future revenue visibility. For the full fiscal year, Oracle generated $57.4 billion in revenue, up 8%, with operating cash flow of $20.8 billion, a 12% increase. CEO Safra Catz projected even stronger growth in FY26, with cloud infrastructure revenue expected to grow over 70% and total cloud revenue by more than 40%. Oracle has garnered some optimistic views on the Wall Street with a consensus 'Moderate Buy' rating and a mean price target of $222.44, which is 5% below the stock's current trading price. The stock has been rated by 35 analysts with 22 'Strong Buy' ratings, one 'Moderate Buy' rating, and 12 'Hold' ratings. On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
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ORCL's Cloud Database Gains Steam: Is it the Next Revenue Pillar?
Oracle ORCL has taken critical steps to advance its database capabilities. As the company experiences enterprise shifts from on-premise databases to the cloud, it anticipates cloud database services to become the third pillar for revenue growth. In the fourth quarter of fiscal 2025, cloud database services rose 31% year over year and now have annualized revenues of $2.6 billion as usage continues to grow. ORCL's launch of the Oracle 23 AI platform has enhanced enterprise functionality through secured training of business data with AI models. The company's flexibility to run its databases anywhere, with embedded AI and analytics via training of popular models, explains its growing popularity among enterprises seeking scalable and secure solutions globally. To further boost its database command, ORCL is actively migrating customers to its Autonomous databases, which are designed to be more self-managing and cost-efficient. This transition has been visible, as Autonomous database consumption revenues rose 47% on top of 27% growth reported last year. These initiatives are expected to drive cloud consumption, directly impacting top-line growth. ORCL's capital expenditure for fiscal 2026 is expected to exceed the $25 billion mark, with a focus on building 47 multi-cloud data centers. This infrastructure expansion is critical for supporting the surging demand for Autonomous databases and Oracle 23AI, as well as fulfilling the $138 billion in remaining performance obligations. Our model estimate for ORCL's fiscal 2026 cloud services and license revenues is pegged at approximately $52 billion, indicating year-over-year growth of 17.3%. Oracle is facing stiff competition from Amazon's AMZN AWS and Microsoft's MSFT Azure in cloud database services. Amazon's AWS is the leading provider of cloud infrastructure to enterprises. The company recently launched Nova Premier, a multimodal model designed to handle complex tasks like coding and natural language processing. Amazon plans to invest over $1 billion to build AI-enabled data centers in Ohio and Georgia, further strengthening AWS as a key profit driver for the company. Microsoft Azure commands a significant portion of the cloud space with its expertise in delivering scalable solutions across infrastructure, software and platforms. The company's presence in more than 70 announced Azure regions has strengthened its position, and Microsoft further plans to invest $80 billion in developing AI-focused data centers globally. ORCL's shares have appreciated 43.3% in the year-to-date period, outperforming both the Zacks Computer and Technology sector's return of 7% and the Zacks Computer-Software industry's growth of 16.4%. Image Source: Zacks Investment Research Oracle trades at a three-year EV/EBITDA of 28.69X, substantially above the industry average of 20.07X. ORCL has a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for ORCL's fiscal 2026 earnings is pegged at $6.71 per share, which has remained steady over the past seven days. This indicates an 11.28% increase from the figure reported in the year-ago quarter. Oracle Corporation price-consensus-chart | Oracle Corporation Quote ORCL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
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Oracle (ORCL) Shares Tumble After Mega Discount Deal With Federal Agencies
July 7 - Oracle (NYSE:ORCL) shares slid nearly 2% Monday after the company unveiled steep price cuts for U.S. federal agencies, according to a Monday announcement by the General Services Administration. Warning! GuruFocus has detected 9 Warning Signs with ORCL. Under the deal, agencies gain a 75% discount on Oracle's license?based technology and access to advanced data management tools, such as Oracle Database 23ai on Oracle Cloud Infrastructure, through November 2025. CEO Safra Catz said the firm is working closely with the GSA to modernize federal systems, noting that AI?driven cloud services could help agencies do more while spending far fewer taxpayer dollars. Acting GSA Administrator Stephen Ehikian described the pact as a landmark agreement, part of the OneGov program that bases pricing on government?wide volume rather than separate agency deals. The program follows similar discounts from Google (NASDAQ:GOOGL), Adobe (NASDAQ:ADBE), Salesforce (NYSE:CRM) and Elastic (NYSE:ESTC). Despite today's pullback, Oracle shares are up about 40% year?to?date, reflecting investor confidence in its cloud and software offerings. All told, the GSA deal underscores Oracle's push to expand its public?sector footprint by combining deep discounts with cutting?edge AI capabilities. This article first appeared on GuruFocus.
