Oracle Might Be the Most Undervalued Tech Stock Right Now
Oracle stock may be down compared to its September high, but it could surprise investors with incredible growth before the end of the year.
Quick overview
- Oracle's stock fell 7% this week due to a 67% drop in gross profit margin as the company invests heavily in AI and data center growth.
- Despite recent declines, Oracle's stock has shown recovery, currently priced at $292 per share, significantly higher than the start of the year.
- The company reported a 62% revenue growth in the fourth fiscal quarter of 2025 and announced a cash dividend of $0.50 per share.
- Analysts predict Oracle's stock could reach a target value of $350, indicating strong potential for future growth.
Oracle stock slid this week after a report emerged that the company’s gross profit margin fell 67% since the company has been pouring heavily into investments in AI and data center growth.
Oracle (ORCL) is ramping up its expansion as the company prepares to ride the wave of AI market growth, but this has put the company’s profits in the red and caused stock decline this week. The company’s stock price fell 7% partway through the day on Tuesday but then closed the day off with a decrease of only 2%.
As Thursday’s trading starts, Oracle stock is up 1.47%, showing further recovery. Now priced at $292 per share, the stock is significantly higher than it was at the start of the year.
Oracle’s Year of Growth
Even as the tech company has been investing into its plans for expansion, their stock value has skyrocketed in 2025. Starting the year off at about $162 per share, the company’s stock price peaked in September at a value of $328.
The company has expanded its reach this year and has enjoyed very strong partnerships with a number of major tech companies. Google, Azure, and Amazon all use Oracle technology, and the company has seen significant inflows from their MultiCloud division which offers cloud computing and storage to many companies.
In the fourth fiscal quarter of 2025, Oracle’s revenue grew 62% and they announced a cash dividend of $0.50 per share for common stock. Even though their profits dropped considerably, they have kept their income high and have only lost out on profits because of their massive investment into the future.
This is a company that has proven it can stay on the cutting edge of technology and offer valuable services to growing tech companies, so investors should be willing to give them a look. The potential for stock growth is tremendous with Oracle, as one analyst has predicted this stock to outperform with a target value of $350. That would be Siti Panigrahi, who is an analyst for Mizuho, and investors should pay attention to this potentially very undervalued stock.
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