Today: 31 October 2025
Subscribe
Oracle (ORCL) Stock Rockets 70% on AI Frenzy – Jim Cramer Warns “It’s the Only One I’m Worried About”
31 October 2025
 ·  ·  ·  ·  · 
5 mins read

Oracle (ORCL) Stock Skyrockets in AI Cloud Craze – 70% Rally & Bullish Targets

by
  • Current Price & Trends: As of Oct. 31, 2025 Oracle (NYSE: ORCL) is trading around $264 (up ~2.9% intraday [1]), after closing at $256.89 on Oct. 30 [2]. This follows a volatile stretch: the stock peaked near $345 in early September and has since pulled back into the high-$200s [3] [4]. Even with the recent dip, ORCL is roughly +70% year-to-date [5], reflecting a dramatic AI-driven surge from about $160 in January [6].
  • AI/Cloud Deals Fueling the Rally: Investors have bid up ORCL amid rumors of mega AI contracts. Unconfirmed reports cite a ~$300 billion five-year cloud deal with OpenAI and a ~$65 billion AI-infrastructure pact with Meta [7], deals that ostensibly helped drive Oracle’s RPO backlog to ≈$455 billion (up 359% YoY) in Q1 [8]. Management has begun to capitalize on this hype: CEO Safra Catz announced at the Oct. 16 analyst meeting that Oracle now aims for $225 billion in revenue by FY2030 (with ~$166 billion from cloud) [9], up from current levels.
  • Latest Earnings & Guidance: In fiscal Q1 2026 (quarter ended Aug. 31, 2025) Oracle reported $14.93 billion in revenue (+12% YoY) [10]. Cloud (SaaS+IaaS) revenue was $7.2 billion (+28% YoY) [11], reflecting strong infrastructure growth. Non‑GAAP EPS was $1.47 (consensus ~$1.48) [12]. Catz hailed this as “an astonishing quarter” [13] and noted that four multi‑billion-dollar AI cloud contracts were signed in Q1, fueling the backlog surge [14]. Oracle reaffirmed robust guidance: it expects OCI infrastructure revenue to grow ~77% to $18 billion in FY2026 [15] and sees Q2 total revenue up ~12–14% (cloud up 32–36%) [16].
  • AI Strategy and Technology: Oracle is aggressively pitching new AI infrastructure. On the earnings call, Catz emphasized that customers can now “connect all their databases directly” to leading AI models like ChatGPT, Gemini and Grok on Oracle Cloud [17]. Founder Larry Ellison stressed Oracle’s multi-cloud partnerships and capacity expansion, saying they plan “another 37 datacenters” (for a total of 71 with partners) to meet surging demand [18]. (Ellison quipped at Oracle’s AI World event “AI changes everything.” [19]) These moves underscore Oracle’s pitch that it is becoming a “Tier-1 hyperscale” player on par with Azure/AWS/GCP [20] [21].
  • Major News & Partnerships: In recent days Oracle has featured in several headlines. In late October, Oracle (with Related Digital) was selected to build a new OpenAI “Stargate” AI data center in Saline Township, Michigan – part of a 4.5 gigawatt U.S. cloud partnership with OpenAI [22]. This multi‑GW, multi‑$billion project was touted by OpenAI as expanding U.S. AI infrastructure and creating thousands of jobs [23] [24]. Separately, U.S. government announcements reveal Oracle is among the consortium acquiring a controlling stake in TikTok’s U.S. business [25], highlighting CEO Larry Ellison’s indirect role (Ellison co‑founded Oracle). Oracle also inked a “OneGov” deal with the U.S. GSA in July 2025, offering federal agencies deep discounts on Oracle Cloud and AI database services [26]. These strategic developments keep Oracle in the spotlight beyond its core enterprise base.
  • Analyst Sentiment & Targets: Wall Street’s view is mixed but leans bullish. In mid-October, Jefferies, Barclays, UBS and others raised ORCL to Buy/Outperform with 12–18 month price targets in the $360–$400 range [27]. Marketbeat.com aggregates show a consensus ‘Moderate Buy’ with an average target around $324 [28] (the LSEG median is ~$355 [29]). By comparison, ORCL closed Oct. 30 near ~$257, so many targets imply upside. Analysts have been encouraged by Oracle’s backlog and new AI contracts; for example, Jefferies called Oracle’s Q1 results “truly historic” [30]. That said, some caution persists: several brokers note Oracle’s rich valuation (~45–60× forward earnings [31]). One firm (Redburn) even flagged the massive OpenAI deal as “very risky” [32]. CNBC’s Jim Cramer warned Oracle is “the only one I’m worried about,” due to its heavy reliance on the OpenAI bet [33].
  • Competitor Comparison: Oracle’s AI/cloud push plays out against cloud and software giants. Microsoft’s Azure remains the biggest direct comparison: Q1 FY2025 results showed 40% growth in Azure revenue (Microsoft posted record $35 billion capex) [34], though its stock dipped on higher spending. Amazon’s AWS (leader in cloud) grew 20% in Q3 2025 [35], driving Amazon shares up 14% (afterhours) on Oct. 30 [36]. In enterprise apps, SAP’s cloud business grew ~27% in Q3 [37] (with backlog +27%), but SAP cautioned its full-year cloud revenue may slip to the low end of forecasts [38]. Salesforce (CRM software leader) also leans into AI: its Q2 FY2026 revenue of $10.2 billion (+10% YoY) beat estimates and it forecast growth to ~$60 billion by 2030 [39], while expanding AI tie-ups with OpenAI and Anthropic. In short, Microsoft, AWS, SAP and Salesforce are all investing heavily in AI/cloud – Oracle’s surge reflects that sector-wide momentum, but those peers still dwarf Oracle’s share of the cloud market (AWS ~30%, Azure ~20%, Google Cloud ~13% vs. Oracle ~3% [40]).
  • Strategic Outlook & Tech Market: Oracle’s management is selling a bold vision. They’ve projected enormous growth – for example, CEO Catz said Oracle expects OCI revenue to rise from $18 billion (FY2026) to $144 billion by FY2030 [41]. In support, CFO Sicilia insisted on Oct. 28 that he sees “real value in AI as demand far outpaces supply,” dismissing fears of an AI bubble [42]. Indeed, Oracle is pouring capital into data centers (industry sources say $50–$60B per year) to capture AI compute demand [43]. However, the stock’s forward price/earnings reflects sky-high expectations: at ~$270, ORCL trades near 50× projected earnings [44]. Any misstep – e.g. cost overruns or a slower-than-expected uptake of Oracle Cloud – could dampen sentiment. As one analyst put it on the earnings call: “pay attention to this…because this is a career event happening right now” [45] (referring to Oracle’s AI-driven results).
  • Analyst & Expert Quotes: Wall Street analysts have been vocal. Guggenheim’s John DiFucci said on the earnings call, “I’m sort of blown away by what this looks like going forward,” noting the quarter was “a career event” [46]. Deutsche Bank’s Brad Zelnick called the results evidence of “a seismic shift happening in computing” [47]. In industry commentary, eMarketer’s Jacob Bourne observed that “enterprises are clearly eager for cost-effective AI cloud tools,” noting Oracle’s positioning in that wave [48]. On the more cautious side, some observers stress execution risk – as one report bluntly noted, Oracle’s OpenAI deal is “very risky” and the stock “has to hit its lofty forecasts to justify the price.” [49].
  • Summary Outlook: In summary, Oracle sits at the center of the AI/cloud hype cycle. Its Q1 results and AI initiatives have won it a “blockbuster” reputation [50], and analysts foresee further gains if management’s aggressive cloud forecasts materialize [51]. The stock’s recent pullback (falling ~21% from its Sept peak [52]) reflects profit-taking amid uncertainty, but the majority view remains bullish over the medium term. Investors will be watching whether Oracle can convert its massive pipeline into sustained revenue growth and margin improvement. For now, ORCL’s rally reflects both its company-specific deals (TikTok, OpenAI, government contracts) and the broader tech market’s enthusiasm for AI – a mix that could drive the stock higher if the AI investment cycle remains intact, but also poses risk if the hype proves overdone [53] [54].

Sources: Recent financial news and analysis from Reuters, CNBC, MarketBeat, ts2.tech, Oracle press releases, and company filings were used throughout (see citations) to compile the above. Each fact and quote is cited from the original source as indicated.

Why Oracle Is The Next Big AI Stock
Watch this video on YouTube.

References

1. www.reuters.com, 2. stockinvest.us, 3. ts2.tech, 4. ts2.tech, 5. ts2.tech, 6. ts2.tech, 7. ts2.tech, 8. ts2.tech, 9. ts2.tech, 10. ts2.tech, 11. ts2.tech, 12. ts2.tech, 13. investor.oracle.com, 14. ts2.tech, 15. ts2.tech, 16. www.reuters.com, 17. www.reuters.com, 18. www.reuters.com, 19. ts2.tech, 20. cloudwars.com, 21. ts2.tech, 22. openai.com, 23. openai.com, 24. thesalinepost.com, 25. www.cbsnews.com, 26. ts2.tech, 27. ts2.tech, 28. ts2.tech, 29. ts2.tech, 30. ts2.tech, 31. ts2.tech, 32. ts2.tech, 33. ts2.tech, 34. www.reuters.com, 35. www.reuters.com, 36. www.reuters.com, 37. cloudwars.com, 38. www.reuters.com, 39. www.reuters.com, 40. ts2.tech, 41. www.reuters.com, 42. www.reuters.com, 43. cloudwars.com, 44. ts2.tech, 45. www.investopedia.com, 46. www.investopedia.com, 47. www.investopedia.com, 48. www.reuters.com, 49. ts2.tech, 50. www.reuters.com, 51. ts2.tech, 52. ts2.tech, 53. www.reuters.com, 54. www.reuters.com

Tags:

Marcin Frąckiewicz Latest posts

CEO of TS2 Space and founder of TS2.tech. Expert in satellites, telecommunications, and emerging technologies, covering trends in space, AI, and connectivity.

  1. Comet 3I/ATLAS: The Interstellar “Ghost Comet” Haunting Our Solar System This Halloween
  2. Meta Platforms Stock Takes a Sharp Dive: What Shocked Investors on Oct. 30–31, 2025?
  3. Alphabet (Google) Stock Skyrockets on AI & Cloud Boom – Could $300 Be Next?
  4. Oracle (ORCL) Stock Skyrockets in AI Cloud Craze – 70% Rally & Bullish Targets

Stock Market Today

  • Walmart Declares $0.235 Dividend: 0.9% Yield, 28% Payouts Well Covered
    October 31, 2025, 4:58 PM EDT. Walmart (WMT) will pay a $0.235 per-share dividend on Jan 5, yielding about 0.9% of the price. The payout is well covered by earnings and cash flow, with a projected payout ratio near 28% next year as EPS is forecast to grow about 28.8%. Walmart has a long history of stable distributions, rising from $0.653 in 2015 to $0.94 recently, an about 3.7% annual increase. While dividend growth may be muted, the stock remains a credible income stock thanks to solid coverage and growing earnings. Investors should weigh other factors beyond income, including risks and valuation, even as Walmart's dividend policy supports steady cash returns.
  • Chevron Stock Surges on Q3 Earnings Beat, but Growth Outlook Remains Muted
    October 31, 2025, 4:52 PM EDT. Chevron (CVX) jumped about 2.4% mid-morning after delivering a stronger-than-expected Q3 beat on adjusted earnings of $1.85 per share on sales of over $49.7 billion. Analysts had expected $1.71 on $47.4 billion. The company produced a record 4.1 million BoE per day in Q3, up 21% year over year, though profit fell 27% from Q3 2024 on higher costs tied to the Hess acquisition and softer oil prices. Free cash flow slipped about 12% to $4.9 billion. Management did not provide Q4 guidance, leaving analysts to model roughly $6.68 of EPS and about $16.8 billion in free cash flow for the year. At roughly 23.5x 2025E earnings, the stock looks pricey unless oil-price momentum returns and earnings grow faster than 8% annually. Investors remain cautious.
  • Technical Short Covering Lifts Sugar Prices
    October 31, 2025, 4:50 PM EDT. Technical short covering lifted sugar futures after a three-week slide pushed NY #11 SBH26 and ICE #5 SWZ25 higher. March NY sugar rose +1.12% and Dec London white sugar gained +1.01% as prices edged off multi-year oversold levels. The rebound comes despite ongoing supply expectations: Brazil Center-South production set to rise to a record 44 MMT in 2026/27, and global surplus forecasts from BMI Group (10.5 MMT for 2025/26) and Covrig Analytics (4.1 MMT) cite ample supply. India and Thailand output and monsoon rains add to bearish tone, with India potentially exporting up to 4 MMT. Still, technicals are supporting a short-cover rally amid oversold conditions. Market participants will monitor Brazilian weather, export outlook, and global surplus estimates for near-term direction.
  • BCE's Series AA Preferred Yield Clears 6% as PRA Trades Near $20.58
    October 31, 2025, 4:48 PM EDT. On Friday, BCE Inc's Cumulative Redeemable First Preferred Shares, Series AA (BCE-PRA.TO) yielded above 6% based on its quarterly dividend annualized to $1.235. The shares traded as low as $20.58, leaving BCE-PRA with a 17.48% discount to its liquidation preference. The issue remains convertible. In intraday trading, BCE-PRA gained about 1.6%, while the common shares (BCE.TO) slipped around 0.2%. The setup underscores a yield-rich option in BCE's preferred stock complex amid a backdrop of price moves and convertibility features.
  • EPR Properties' Series E Preferred Shares Yield Breaks Above 7.5% as Price Dips
    October 31, 2025, 4:46 PM EDT. On Friday, EPR Properties' 9.00% Series E Cumulative Convertible Preferred Shares (EPR.PRE) yielded above the 7.5% threshold based on its quarterly dividend of $2.25 (annualized). Shares traded as low as $29.56, underscoring value against the Real Estate preferred stock average of 7.81% per Preferred Stock Channel. As of the last close, EPR.PRE traded at a 20.16% premium to its liquidation preference versus an 11.82% average discount in Real Estate. The issue is convertible with a conversion ratio of 0.4512. In Friday trading, EPR.PRE was down about 0.1%, while the common shares (EPR) rose roughly 0.3%. The chart compares one-year performance of EPR.PRE versus EPR.
Go toTop