The price of ORCL has been climbing higher since the break of downtrend resistance at $155. The resistance ahead is at $181 with the larger upside target at $200. Weakness would head back to the trend line.
Oracle releases earnings on Wednesday and that could be the start of volatility for the week as the latest consumer price index, released by the Bureau of Labor Statistics, will also come out. The Federal Reserve announces its monetary policy decision a week later, and the rate cut expectations will drive the market. President Trump was calling for another rate cut last week, and a soft CPI print could add to the bullish activity of tech stocks.
Oracle will report its Q4 results, with analysts expecting 9% year-on-year revenue growth and a 1% increase in profits. Shares have risen over 40% in the past 12 months, driven by strong cloud momentum and AI-related expectations.
The company recently announced plans to spend $40B on Nvidia chips to support OpenAI’s new Texas-based data center, highlighting its aggressive push into the AI infrastructure business. Wall Street analysts remain bullish on the stock due to strong cloud growth (up 23%), a rising backlog of AI contracts, and a long-term revenue growth outlook of 20% by 2027.
A recent 25% dividend increase gives the stock a higher yield than most of its tech rivals, while the company is still committed to share buybacks.
Oracle has beaten earnings per share estimates in 5 of the past 8 quarters, but revenue in only 2 of those releases.
The company has a chance to aim for further highs and a weaker inflation print on Wednesday could add fuel to the rally.
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