Oracle's Stock Rally: Why There's More Upside Ahead
Despite a strong year-to-date performance, Oracle’s shares appear poised for further gains. Following its impressive latest quarterly earnings, Oracle’s stock climbed 13% in a single day. Victoria Greene, Chief Investment Officer at G Squared Private Wealth, believes the cloud computing giant could soar even higher, potentially reaching $300 per share within the next 12 months, implying a 50% increase from recent levels.
Greene highlights Oracle’s impressive cloud infrastructure growth, especially its expected 70% revenue jump by fiscal 2026, fueled by ongoing investments in artificial intelligence technologies like Stargate. This rapid expansion is anticipated to propel Oracle’s market position and stock price to new heights.
IBM's Transformation Inspires Long-Term Confidence
Another stock catching Greene's eye is IBM, a firm she has championed for its strategic reinvention through impactful acquisitions. With recent deals including the $6.4 billion acquisition of HashiCorp and the purchase of software company Apptio, IBM is rapidly evolving its cloud and AI capabilities.
IBM's latest initiative to develop the Quantum Starling, a fault-tolerant quantum computer, further underscores its innovation drive. Greene points out IBM’s successful integration of AI, saving the company an estimated $3 billion, with 20-30% of its software now AI-generated. This momentum has helped IBM hit a 52-week high and climb roughly 28% year to date, with room to grow over the next few years.
Why Datadog Remains on the Sidelines
While Greene remains optimistic about Oracle and IBM, she's more cautious regarding Datadog. Despite a recent upgrade that boosted its shares nearly 3%, the stock faces challenges that temper enthusiasm. These include margin pressures, cost control issues, and stiff competition.
Greene notes that Datadog’s growth appears somewhat stalled, especially in expanding cross-selling among customers. With shares down 14% so far this year and the stock trading below its 200-day moving average near $123, she prefers to wait for a clearer breakout before recommending a buy.
Investment Insights at a Glance
- Oracle: Poised for up to 70% revenue growth in cloud infrastructure; potential 50% stock gain ahead.
- IBM: Strategic acquisitions and bold AI integration driving long-term upside; stock up 28% YTD.
- Datadog: Facing margin and competitive headwinds; bearish near-term outlook.