From 24/7 Wall St. · Vandita Jadeja · · 1m 10s
Oracle Stock Target Rises as Cloud Growth Surges
Oracle's cloud revenue jumps 121% while stock falls 30% year to date, sparking a $200.70 price target.
In brief
Oracle's cloud revenue jumps 121% while stock falls 30% year to date, sparking a $200.70 price target. Oracle's cloud growth outpaces debt concerns, with a $200.70 price target for 12 months. Originally reported by 24/7 Wall St..
Cloud Revenue Surges
Oracle's cloud infrastructure revenue jumped 121% in Q1 fiscal 2027.
“Cloud infrastructure revenue jumped 121%”
Stock Plummets Year to Date
Shares fell 30.71% year to date amid debt and capital spending fears.
“Shares fell 30.71% year to date”
Price Target Set at $200.70
24/7 Wall St. predicts Oracle stock reaches $200.70 in 12 months from current $133.28.
“Price Target from 24/7 Wall St. $200.70”
Upside Potential
The stock has 50.6% upside potential to reach the price target.
“50.6% upside”
RPO Conversion Strategy
Oracle expects around half of its $664 billion RPO to convert into sales within 36 months.
“around half of our RPO to convert into sales over the next 36 months”
Debt and Capex Pressures
Q1 capex hit $28.5 billion, driving free cash flow to -$5.40 billion.
“Q1 capex hit $28.5 billion”
Competitor Comparison
Oracle trades at a lower multiple than Microsoft and Amazon despite faster growth.
“Oracle is growing faster than both at a lower multiple”
Bull Scenario
If RPO converts on schedule, Oracle stock could reach $322.31.
“bull scenario reaches $322.31”
The main idea
Oracle's cloud growth outpaces debt concerns, with a $200.70 price target for 12 months.
