Oracle Shares Slide 1% After Analysts Slash Price Targets to $215–$300
Oracle shares dropped 1% ahead of its Q3 report after Deutsche Bank cut its price target to $300 and Barclays and Scotiabank trimmed theirs to $230 and $215. Investors will gauge $16.9 billion Q3 sales and $1.55 EPS against Oracle’s $100 billion AI-investment debt.
1. Q3 Earnings Preview
Oracle is set to report Q3 results after the close, with analysts forecasting revenue of $16.9 billion, up from $14.1 billion a year ago, and earnings per share of $1.55. The stock dipped 1% in premarket trading as investors weighed these expectations against recent headwinds.
2. Analyst Price Target Cuts
Deutsche Bank trimmed its Oracle price target from $375 to $300, while Barclays lowered its target from $310 to $230 and Scotiabank from $220 to $215. These cuts reflect growing caution around growth prospects and margin pressures tied to the company’s AI investments.
3. Technical Indicators
Oracle shares are trading below both the 20-day and 100-day simple moving averages, signaling short-term weakness. The RSI sits near neutral territory, and a recent MACD bullish crossover could hint at a potential shift, with key support at $138.50 and resistance at $165.50.
4. AI Investment and Debt
Oracle’s expansion of AI-powered data centers has driven its debt load above $100 billion, raising concerns over debt servicing and margin impact. Investors will monitor how this leverage affects cash flow and the company’s ability to fund further AI infrastructure growth.