Major S&P 500 Movers on Wednesday
50 minutes ago
Gainers
- Oracle (ORCL) saw its share price leap by 36%, marking it as the top performer in the S&P 500. Despite fiscal first-quarter sales and profits falling short of predictions, Oracle increased its forecast for cloud infrastructure fueled by skyrocketing AI demand and anticipated major customer acquisitions. Consequently, Bloomberg reported that the net worth of co-founder Larry Ellison surpassed that of Elon Musk, making him the richest person globally.
- Other AI-related stocks benefitted from Oracle’s positive outlook. Broadcom (AVGO) shares surged by 9.8% following approval of a long-term equity award for CEO Hock Tan, linked to the firm’s success in the AI sector.
- Vistra (VST) and Constellation Energy (CEG) also capitalized on AI demand, seeing respective increases of 8% and 6.4% as they sought to leverage energy resources for burgeoning data center needs.
Decliners
- Shares of Synopsys (SNPS) plummeted by 36%, the steepest decline in the S&P 500. The semiconductor design software company missed quarterly sales and profit forecasts, also lowering its guidance for the upcoming quarter.
- The Trade Desk (TTD) saw a decline of 12% after Morgan Stanley downgraded its rating, attributing it to challenges within the connected TV sector.
- A price target decrease from Morgan Stanley also affected Epam Systems (EPAM), which fell by 7.2%, as analysts expressed concerns over demand trends and legislative hurdles impacting outsourcing.
Experts Predict Further Growth for Oracle Stock
1 hr 13 min ago
Oracle’s (ORCL) remarkable stock surge, driven by strong AI demand, has prompted many on Wall Street to adjust their price targets upward, with expectations of continued momentum.
The stock price rose 36% on Wednesday, reaching approximately $328, following what Deutsche Bank analysts hailed as “truly awesome results” that solidified Oracle’s leadership in AI infrastructure. This gain nearly doubled the stock’s value since the year’s onset.
“Few quarterly results match this one in terms of magnitude,” noted Deutsche Bank analysts, highlighting Oracle’s $455 billion backlog, which represents a significant increase compared to last year.
Oracle has recently secured several multi-billion-dollar contracts and expects future deals to further boost its growth, possibly including a deal with OpenAI, reportedly worth $300 billion over five years.
Following the impressive results, Deutsche Bank raised its price target for Oracle’s stock from $240 to $335, indicating that it may soon hit this new target.
Other analysts were even more optimistic; Jefferies adjusted their target to $360, while Bank of America set its price at $368, recognizing Oracle as a key player in AI innovation.
