10 Most Promising Cloud Stocks According to Analysts

3. Oracle Corporation (NYSE:ORCL)

Potential Upside: 64.93%

Number of Hedge Fund Holders: 122

Morgan Stanley, in an update issued on January 23, lowered its target price on Oracle Corporation (NYSE: ORCL) from $320 to $213. The stock is currently trading about 19% below this level. The investment firm is confident that the company will succeed in its massive GPU-as-a-Service (GPUaaS) opportunity. However, the capital-intensive buildup required to successfully provide this service is likely to drive short-term earnings downward.

On January 20, Guggenheim analyst John Difucci maintained a Buy rating on the stock, along with the price target of $400. The firm views Oracle as a long-term growth story, anticipating hyper-EPS growth and substantial free cash flow over the coming decade.

In another major development, under a transaction that closed on January 22, Oracle, PE firm Silver Lake Management, and Abu Dhabi-based MGX will each own a 15% stake in TikTok’s US entity. This ownership stake positions Oracle to benefit, as it has been a cloud computing partner to TikTok for many years and, according to some reports, has been designated as the Trusted Technology Partner. A Bloomberg report on the development said that “Oracle will serve as a security guard charged with ensuring TikTok complies with the law.” With this development, Oracle is well-positioned to benefit from TikTok’s cloud computing and infrastructure needs.

Oracle Corporation (NYSE:ORCL) provides a range of products and services to support enterprise IT environments across the globe. The company’s Oracle cloud software as a service offering consists of different cloud software applications, such as Oracle Fusion cloud enterprise performance management EPM,  Oracle Fusion cloud enterprise resource planning ERP, Oracle Fusion cloud human capital management HCM, and others.