The five macro trends set to define 2026
Investing.com - DA Davidson lowered its price target on Oracle (NYSE:ORCL) to $200.00 from $300.00 on Tuesday, while maintaining a Neutral rating on the stock. The revised target sits close to Oracle’s current trading price of $191.50, representing a significant drop from the stock’s 52-week high of $345.72.
The firm cited concerns about Oracle’s reliance on OpenAI for its reported increase in remaining performance obligations (RPO), noting that shares are now trading lower than before the company’s September 9 earnings report. This decline is part of a broader pullback, with InvestingPro data showing Oracle has suffered a 9.17% drop over the past week.
DA Davidson pointed out that while Oracle initially suggested several customers represented the RPO increase, it was later revealed that OpenAI accounted for almost the entire increase in backlog.
The research firm expressed concern that OpenAI’s subsequent trillion-dollar commitments to other providers indicated Oracle was being used as "a pawn in the grand game of fake it ’till you make it."
DA Davidson also highlighted the increasing cost to insure Oracle’s debt as an indication the market realizes the company "has borrowed too much for a customer that may or may not materialize."
In other recent news, Oracle Corporation has made significant strides in its business operations. The company announced the election of Stephen Rusckowski, former CEO of Quest Diagnostics, to its Board of Directors, expanding the board to 14 members. Additionally, Oracle Health Information Network, a subsidiary of Oracle, has been designated as a Qualified Health Information Network under the Trusted Exchange Framework and Common Agreement, enabling secure health data exchanges nationwide. In the tech sector, Oracle is part of a group of major technology hyperscalers that have issued a record $121 billion in investment-grade debt this year, according to a Bank of America report. This issuance significantly surpasses the five-year average of $28 billion, with $81 billion coming from U.S. dollar investment-grade supply since September. Furthermore, Oracle has secured a significant multi-year deal with OpenAI, contributing to its ongoing partnerships with major cloud providers like Google, Amazon, and Microsoft. These developments reflect Oracle’s strategic moves in expanding its board, enhancing its health information network capabilities, and engaging in substantial financial activities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.