Stock markets suffered a sharp decline yesterday, with the Nasdaq plunging 4%—its biggest drop in nearly 20 months—while the S&P 500 fell 2.5%, marking its worst day in 2025. Global uncertainty remains high, especially for major tech and AI stocks, which have faced increased volatility since Donald Trump’s return to the White House.
Oracle Stock Chart Daily – Opening Above the 200 SMA
Oracle (ORCL) was among the companies hit hard, dropping from $154 to $148.86, closing with a 3.28% loss. After the U.S. session ended, Oracle’s Q3 2024 earnings report was released, falling short of expectations and sending the stock even lower—briefly dipping below $142 before stabilizing above $143.
Weak Earnings, But Cloud Growth Remains Strong
While Oracle’s revenue grew 6% year-over-year to $14.1 billion, it missed market expectations. Net income rose 22% to $2.94 billion ($1.02 per share), compared to $2.4 billion (85 cents per share) a year ago. The company’s cloud services division, which makes up 78% of total revenue, grew 10% to reach $11.01 billion.
Despite the earnings disappointment, CEO Safra Catz emphasized strong demand for Oracle’s cloud services, highlighting strategic partnerships with OpenAI, xAI, Meta (META), and Nvidia (NVDA). Oracle’s Cloud Infrastructure division, which provides computing power to AI firms, is rapidly expanding to meet growing demand.
Oracle’s Quarterly Earnings & 2025 Forecast – Key Takeaways
Q4 2024 Results Miss Analyst Estimates
- Earnings per share (EPS): $1.47 (adjusted) vs. $1.49 expected – a slight miss.
- Revenue: $14.13 billion vs. $14.39 billion expected – falling short of estimates.
- Cloud services revenue: Continued growth, but not enough to meet overall expectations.
Q1 2025 Outlook Falls Below Projections
- Revenue Growth Expectation: 8-10%, lower than the market expectation of 11%, bringing projected revenue to $15.91 billion.
- Adjusted EPS Forecast: Between $1.61 and $1.65, missing analyst projections of $1.79 per share.
- Key Revenue Drivers: Cloud expansion and AI-related infrastructure projects, though competition and economic uncertainty pose challenges.
Trump’s AI Investment Plan: A Potential Catalyst for Oracle?
Looking ahead, Oracle may benefit from Donald Trump’s AI infrastructure investment plan, announced in January 2025. As part of this initiative, Trump unveiled a joint venture called Stargate, partnering with Oracle, OpenAI, and SoftBank to build data centers in Texas. This project, which is already underway, could boost Oracle’s earnings in 2025, potentially exceeding projections if AI-related investments accelerate.
Can Oracle Shares Rebound?
With the 200-day SMA around $141 acting as technical support, buyers may look for a potential rebound at this level. However, further price action will likely depend on broader market sentiment, AI sector performance, and future earnings guidance. If Oracle capitalizes on AI investments and cloud growth, a recovery could be on the horizon.
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