We recently published Jim Cramer Called SpaceX A Meme Stock & Discussed These 7 Stocks. Oracle Corporation (NYSE:ORCL) is one of the stocks discussed by Jim Cramer.
Data center infrastructure provider Oracle Corporation (NYSE:ORCL)’s shares are down by 8.7% over the past year and by 1.7% year-to-date. The past couple of days haven’t been kind to the stock, as it is down by 10%. Oracle Corporation (NYSE:ORCL)’s stock closed by 11% after the firm reported its fiscal fourth quarter earnings. The results saw it post $19.18 billion in revenue and $2.03 in adjusted earnings per share to beat analyst estimates of $19.1 billion and $1.96. Additionally, Oracle Corporation (NYSE:ORCL) also remarked that it aims to raised $40 billion through debt and equity financing – a figure which includes a $20 billion equity raise. DA Davidson raised the share price target to $225 from $200 and kept a Buy rating on the stock on June 11th following the earnings report. Cramer was surprised that the stock had dipped significantly, as he discussed Oracle Corporation (NYSE:ORCL) in the context of the data center buildout:
“I thought Oracle shouldn’t have been down as much, down 25. It rallied nicely. I think it could go up again. I mean, you know, so, look, is Oracle perfect at putting up data centers?. . .Oracle’s not being known right now as being a great builder. They’re also not known as a great negotiator. . .they’re good.”
After the earnings, the CNBC TV host had called the selling in Oracle Corporation (NYSE:ORCL)’s shares “panic selling”:
“Interesting panic selling in Oracle even down here. Selloff must stop to sustain any advance.. They have made themselves too crucial”
He also recommended buying the stock at one point:
“Oracle down 17 seems intriguing to me.. Buy some here….”
Additionally, he discussed the firm’s operations:
“Watch Oracle. It was a gigantic number when it came to backlog. Huge. So spending has to go up. (not a traditional levered-so-backlog spend as these are so hard to build.) BUT they can lay off what they need to lay off and the funding needs aren’t outrageous. It doesn’t have to be down big.”
While we acknowledge the risk and potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ORCL and that has 10,000% upside potential, check out our report about the cheapest AI stock.
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