From Yahoo Finance: 2025-03-23 15:52:00

Oracle’s stock market performance has been strong, with a 230% gain over the past five years. However, recent pressure has seen shares drop 7% in 2025. Despite underwhelming results, Oracle remains a potential buying opportunity due to its promising future in the cloud infrastructure market.

Investors reacted negatively to Oracle’s third-quarter results, with revenue and earnings missing estimates. Management’s guidance for a 9% revenue increase in the current quarter fell short of analyst expectations. However, the company’s cloud infrastructure demand and backlog growth indicate long-term potential.

Oracle’s cloud infrastructure business is booming, with a 62% year-over-year increase in remaining performance obligations to $130 billion. The company’s strong bookings and capacity constraints highlight the high demand for its services, particularly in AI training and deployment.

With plans to double data center capacity this fiscal year, Oracle is poised for revenue growth acceleration. The company’s forecast indicates a potential 15% revenue increase in the next fiscal year and a 20% jump in fiscal 2027, surpassing analyst expectations.

Oracle’s earnings growth outlook is positive, with the potential for a 25% annual increase over the next five years. Trading at a discount compared to the Nasdaq-100 index, Oracle’s stock price could see a significant jump if valuations improve.

Investors are advised to consider adding Oracle to their portfolios, especially after the recent drop. The company’s long-term growth prospects, coupled with its current valuation, make it an attractive investment opportunity.

The Motley Fool predicts Oracle’s stock could surge by 200% in the next five years, given its strong performance and growth potential in the cloud infrastructure market. Oracle’s focus on increasing data center capacity and fulfilling backlog contracts positions it for robust future growth.

Read more: Oracle Stock Could Surge by 200% in the Next 5 Years