:max_bytes(150000):strip_icc()/GettyImages-2128592578-fd0a8ed594f34711be574172c6f71e26.jpg "Why Oracle Stock Jumped More Than 5% to a Record High on Monday")
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Key Takeaways
- Oracle stock was one of the top performers in the S&P 500 on Monday, jumping to an all-time high.
- The gains came as Jefferies analysts lifted their price target on shares of the software giant and Melius upgraded Oracle stock to “buy.”
- Analysts believe Oracle’s strength in cloud infrastructure and partnerships with major cloud players will drive revenue growth.
Oracle (ORCL) shares jumped to a record high on Monday, after a pair of investment firms commended the software giant’s advancements and opportunities for growth in the cloud computing market.
In a note to investors published over the weekend, Jefferies analysts increased their price target on Oracle stock to $190 from $170. Analysts at Melius Research followed suit on Monday, upgrading their rating on Oracle shares to “buy.”
Both analyst teams arrived at their assessments after attending Oracle’s CloudWorld 2024 Conference, held last week in Las Vegas. CloudWorld is an annual customer event where Oracle introduces new products and discusses its technological outlook.
Oracle shares gained 5.1% on Monday to close at $170.33.
Cloud-Driven Acceleration
Following CloudWorld, Jefferies analysts expressed their belief that Oracle “is getting its mojo back.” The team highlighted the increasing competitiveness and accelerated adoption of Oracle Cloud Infrastructure, noting strong growth in Oracle’s backlog as a driver of revenue strength.
Meanwhile, analysts at Melius also focused on revenue growth acceleration, as well as the successes of Oracle CEO Larry Ellison in pursuing strategic partnerships and building a cloud platform that prioritizes artificial intelligence (AI).
In particular, Melius believes Oracle’s partnerships with the “big three” cloud providers—Amazon’s (AMZN) Amazon Web Services, Microsoft’s (MSFT) Azure, and Alphabet’s (GOOGL) Google Cloud Platform—could help ensure a sustainable pipeline for the cloud business and alleviate margin pressure.
Stock Performance
Oracle stock tore higher early last week after the enterprise software firm beat quarterly sales and profit estimates and announced a new multicloud partnership with AWS. The stock extended its gains after an executive provided an optimistic forecast for Oracle’s revenue growth over the next few years.
Including Monday’s gains, Oracle stock has now soared nearly 22% since its Sept. 9 earnings report.