AI Image
Where Will Oracle Stock Be in 1 Year?
The Motley Fool • • business
Key Points:
- Oracle's stock has declined 54% over the past year, mainly due to concerns about the company's increasing debt used to fund AI data center expansion.
- Wall Street remains optimistic, with a 12-month median price target of $240, implying an 84% increase, and 80% of analysts rating the stock as a buy.
- Oracle reported a $664 billion backlog in unfulfilled contracts and showed accelerating cloud infrastructure revenue growth of 121% in fiscal Q1 2027, up from 93% in the previous quarter.
- The company expects a 34% revenue increase in fiscal 2027 to at least $90 billion, with analysts projecting a 46% rise to $131.8 billion in fiscal 2028, supporting a potential premium valuation.
- Trading at a discounted price-to-sales ratio of 5 compared to its five-year average of 6.6, Oracle could see its market cap more than double to $923 billion if it achieves a 7x sales multiple by fiscal 2028, indicating strong upside potential.
