Oracle (ORCL:NYSE) $252.68

Gain to date: 52.3%

Markets were slow to pick up on Oracle’s (ORCL:NYSE) cloud computing growth opportunity but investors are making up for it now.

WHAT HAS HAPPENED SINCE WE SAID BUY?

The stock has doubled since April, including a 22% jump in the wake of impressive fourth-quarter earnings (11 June), with cloud revenues surging 50%, and Oracle expects it to jump 70% in the current financial year (to end May 2026), as the company put up what CEO Safra Catz called ‘dramatically higher’ revenue growth rates. 

Those growth rates are sensational compared to those of Oracle competitors like Amazon Web Services, which saw its revenue increase 19% in 2024. But Oracle remains a pipsqueak in cloud computing, with only about a tenth of AWS’ annual revenue. 

Oracle’s business is fundamentally sound, with revenue growing by double digits annually and supported by a robust pipeline of new opportunities, such as its partnership with Digital Reality to help accelerate digitisation and AI adoption, potential for a new deal with Skydance-Paramount, and expanded demand for the Stargate Project, a massive, $500 billion AI infrastructure initiative spearheaded by OpenAI, SoftBank, Oracle, and MGX.

WHAT SHOULD INVESTORS DO NOW?

Let the opportunity run. Some investors might prefer to take a profit and cut and run but that could mean missing out on significant further upside. Interestingly, forecast revisions from Wall Street analysts have been shifting higher, according to Koyfin consensus data, and a series of higher target prices have begun filtering through.

The catalyst for further moves higher will, of course, be earnings, with eyes fixed on first quarter 2026, due 15 September. Koyfin consensus predicts 13% and 7% year-on-year revenue and earnings growth, but progress is widely seen accelerating through the rest of fiscal 2026 and beyond. Consensus estimates revenue and earnings growth of 20% or more through full years 2027 and 2028.

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