【ORCL Analysis】Oracle's stock surges 9% after earnings; JPMorgan upgrades rating; analysis optimistic about the long-term value of data management business

Oracle (NYSE: ORCL) eases market concerns with its earnings, with the stock soaring nearly 15% on Wednesday and closing up 9% at $163.12. JPMorgan upgraded Oracle from “Neutral” to “Overweight,” lowering the target price from $230 to $210, reflecting a significant reduction in valuation risk after the stock has lost more than half its value since mid-September last year. After successfully raising $25 billion last month, the company is unlikely to issue new bonds this year, which may help alleviate concerns over inflated debt ratings.

Oracle announced a $29 billion deal, introducing customer prepayments and a “bring your own hardware” model, allowing AI infrastructure expansion without draining cash flow. Management also dismissed claims that AI is replacing traditional software, stating that Oracle is the “disruptor.”

A stock analyst told our video program that the company has clarified its cash flow situation, alleviating fears of insufficient funds and over-expansion. Cost controls from previously announced layoffs and halted expansion plans have shown results, improving fundamentals. The analyst noted that Oracle’s earnings beat expectations, driving a stock rebound. Key technical resistance is at $172; if broken, further gains are possible. The stock’s bottom is clearly around $140–$150, which is an important support zone, and the current price could recover to the $200–$250 range.

The analyst also highlighted Oracle’s involvement in hardware infrastructure and data management, with the latter having long-term value. In the AI era, data is becoming crucial for business competitiveness. Future demand for data management is expected to grow significantly, benefiting Oracle. “Right now, with AI, the most valuable thing isn’t the models, because everyone is similarly smart, but the data—customer preference data within each company. Different data enables AI to produce different solutions.” He predicts that industry distinctions will shift from traditional old and new economies to “AI automation operations” versus “manual operations,” with AI-driven companies likely to have higher valuations, and Oracle is poised to benefit.