Key Takeaways
- Shares of Oracle gained 2% in Friday’s pre-market session following Wedbush’s new Outperform rating
- Wedbush’s Daniel Ives established a $225 per share price objective, compared to the current trading level near $176
- The firm contends investors are misinterpreting Oracle’s capital expenditures — the majority is secured by existing AI agreements
- Multi-cloud database revenue skyrocketed 531% compared to the prior year in the third quarter of fiscal 2026
- Analyst consensus stands at Strong Buy, featuring a mean price objective of $244.89
Shares of Oracle advanced 2% during Friday’s pre-market session after Daniel Ives of Wedbush Securities launched coverage on the stock with an Outperform rating alongside a $225 price objective.
Ives ranks among the most closely watched technology sector analysts on Wall Street, and his latest recommendation is generating renewed interest in a stock that has declined 37.4% during the last half-year period.
Oracle is currently changing hands near $176.28. The Wedbush price objective suggests potential appreciation of approximately 28% from present levels. The broader analyst community on Wall Street maintains an even more optimistic stance, with a consensus price objective averaging $244.89.
The fundamental thesis behind Wedbush’s bullish stance is straightforward: investors are misjudging Oracle’s true position.
Ives contends that while Oracle’s substantial capital investments may appear hazardous at first glance, the bulk of these expenditures are linked to confirmed AI agreements — indicating they’re driven by actual customer demand rather than speculation.
Cloud Platform Powers Growth Strategy
A critical element of the optimistic outlook centers on Oracle Cloud Infrastructure, commonly known as OCI. According to Wedbush, OCI’s streamlined network architecture provides competitive advantages for artificial intelligence computing tasks, enabling quicker, more responsive processing compared to legacy cloud systems.
This architectural advantage becomes particularly significant during the training phase of sophisticated AI models, where computational velocity and resource efficiency have direct implications for both expenses and output quality.
Oracle is simultaneously advancing its “AI for Data” initiative, centered around the Oracle AI Database 26ai offering. The concept focuses on enabling enterprises to integrate AI capabilities directly with their proprietary business data — a pragmatic application that could accelerate widespread enterprise adoption.
Multi-Cloud Strategy Delivers Explosive Revenue
The financial performance in the multi-cloud segment is particularly striking. During the third quarter of fiscal 2026, Oracle’s multi-cloud database revenue surged 531% on a year-over-year basis.
This exceptional expansion stems from Oracle’s strategy of deploying its database solutions within competing cloud platforms — including Amazon Web Services and Google Cloud. Instead of directly competing head-to-head with major cloud providers, Oracle has chosen to integrate its technology into their ecosystems.
The company recently unveiled an enhanced collaboration with Google Cloud, introducing the Oracle AI Database Agent for Gemini Enterprise. This innovation enables users to interact with Oracle databases through conversational language.
Additionally, Oracle is working on a separate initiative with AWS focused on enhancing inter-cloud connectivity and integration.
These strategic alliances provide context for the explosive multi-cloud revenue performance. Oracle is positioning itself as essential infrastructure that competitive cloud platforms increasingly rely upon.
Wedbush perceives Oracle transitioning from its conventional database vendor identity toward a core component of the AI infrastructure landscape. Ives maintains that the current stock valuation hasn’t adequately captured this strategic evolution.
During the trailing twelve-month period, Oracle produced $64.1 billion in total revenue, representing 14.9% growth. The enterprise currently maintains a market capitalization approaching $507 billion.
The broader analyst community largely shares the optimistic perspective. Oracle commands a Strong Buy consensus recommendation, supported by 27 Buy ratings and six Hold ratings issued during the past three-month period.
The consensus analyst price objective of $244.89 indicates potential appreciation approaching 39% from current trading levels.
