Oracle’s weakness became an opportunity.
As we noted just yesterday, “Investors may want to take advantage of the pullback to less than $110. At this point, the $18 drop appears to be a severe overreaction.”
Turns out it was a good call.
Not only did ORCL catch support, but it’s starting to move higher, as anticipated. In fact, the stock is up about $2.58, and could eventually refill its bearish gap around $127.50. ORCL is also just starting to pivot from over-extensions on RSI, MACD, and Williams’ %R.
Helping, Mizuho, for example, reiterated its buy rating on ORCL, with a $150 price target. The firm noted, “that despite FQ1 being the seasonally slowest quarter, Oracle delivered organic cloud revenue growth of 29% in constant currency, steered by strength in OCI Gen 2 (66% Y/Y growth) and back-office apps (17% Y/Y increase).”
Also, “While the company reported a slight revenue miss of $20M, this was driven by weaker licenses/hardware revenue (which is of lesser importance), according to the analysts.”