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Vladimir Zernov
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Oracle

Oracle Stock Declines As Company’s Revenue Misses Analyst Estimates

Shares of Oracle found themselves under pressure after the company released its quarterly results. Oracle reported revenue of $9.73 billion and adjusted earnings of $1.03 per share, beating analyst estimates on earnings and missing them on revenue.

The company stated that its quarterly results were “excellent” but the market had another opinion as it focused on the revenue miss. It should be noted that Oracle stock was up by more than 35% since the beginning of this year before the release of the earnings report so the market expected healthy growth on both the top line and the bottom line.

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It should be noted that the market has been in a bearish mood in recent trading sessions as traders continued to take profits near record highs. In this environment, it’s not surprising to see that the market is not happy with the fact that Oracle missed analyst estimates on revenue.

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What’s Next For Oracle Stock?

Oracle stock faced strong resistance near the $90 level ahead of the release of the quarterly report, and it looks that it will need material upside catalysts to move above this level and get to the test of all-time highs.

Analysts expect that Oracle will report earnings of $4.61 per share in the current year and $5.12 per share in the next year, so the stock is trading at roughly 17 forward P/E.

These valuation levels do not look expensive in the current market environment, but it should be noted that earnings estimates showed no growth in recent weeks which is not good for a stock that is trading near all-time high levels.

The general market is clearly in a profit-taking mode right now which is typical for September, and it remains to be seen whether Oracle stock will be able to attract speculative traders in the upcoming trading sessions after the company’s quarterly revenue fell short of analyst estimates.

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