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Oracle (ORCL) shares are trading lower following its third quarter results and softer-than-expected guidance, which fell short of Wall Street's expectations. Despite the earnings miss, the cloud company highlighted artificial intelligence (AI) booking wins.
Julie Hyman and Josh Lipton take a closer look on Market Domination.
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This post was written by Naomi Buchanan.
Now time for some of today's trending tickers. Let's start with Oracle. That stock is moving lower today after reporting disappointing quarterly results and offering a sales and profit forecast for the current quarter short of estimates, unlike some of its large cap tech peers. It is not going back into the green today, but the commentary around it is actually pretty mixed here. Um, for one, JP Morgan said they were very impressed with the sheer raw magnitude of Oracle's bookings trajectory, but they said these are very complex AI build outs that are posing some hurdles.
Yeah, investors underwhelmed. Sales and profit forecast for the current quarter misses. Uh, company did emphasize its remaining performance obligations, um, measure of bookings, 130 billion. That was around 97 billion the previous quarter. Uh, investors are obviously not impressed today. I will say Brent Phil, Jeffries, friend of the show, smart guy, he told his clients today, look through the report and said capacity constraints are expected to ease in the first quarter of 26, which he says should help convert RPO, again, remaining performance obligations to revenue, drive the stock higher, maintains the buy.
Yeah, and the stock's up 26% over the past year. So we've already seen it, um, do pretty well, though it's come down this year in this tech sell-off that we've seen. Larry Ellison's done okay.