Oracle (NYSE:ORCL) shares are up on Thursday as the company expands its multicloud networking capabilities.
This move comes after Oracle announced plans to establish high-speed connectivity between Oracle Cloud Infrastructure (OCI) and Amazon (NASDAQ:AMZN) Web Services (AWS), enhancing its offerings in the competitive cloud market. At the same time, the Technology sector gained 0.27% on Wednesday.
Oracle’s collaboration with AWS aims to provide customers with simplified, high-performance connectivity, allowing for seamless data movement and application modernization.
This initiative is set to enhance Oracle’s multicloud capabilities and is expected to be available later this year.
“With Oracle AI Database@AWS, we pioneered a simpler way for customers to run Oracle AI Database workloads in AWS with the same features, architecture, and performance as they expect on-premises. We’re now building on that by establishing connectivity between our popular cross-cloud interconnect and AWS Interconnect–multicloud,” said Nathan Thomas, senior vice president, product management, Oracle Cloud Infrastructure.
Oracle AI expansion
Yesterday, Oracle expanded its enterprise cloud partnership with a major automotive supplier.
The collaboration centers on deploying AI-powered applications to modernize supply chain operations and improve efficiency at scale.
Denso Corp. (OTC:DNZOY), a global automotive technology manufacturer, will expand its use of Oracle’s cloud suite to streamline procurement, production, and logistics processes.
Technical Analysis
Oracle is currently trading within its 52-week range, which has seen a high of $345.72 and a low of $121.23. The stock is trading 18.9% above its 20-day simple moving average (SMA) and 2.1% above its 100-day SMA, suggesting a strong short-term trend. However, it remains 18.4% below its 200-day SMA, indicating some long-term weakness that traders should monitor.
The relative strength index (RSI) is at 66.48, suggesting that the stock is nearing overbought territory, which may indicate a potential pullback. The moving average convergence divergence (MACD) is currently above the signal line, reinforcing bullish momentum in the short term.
- Key Resistance: $208.00 — This level may act as a barrier for upward movement.
- Key Support: $170.50 — A drop below this level could signal further weakness.
Earnings & Analyst Outlook
Oracle is slated to provide its next financial update on June 10, 2026 (estimated).
- EPS Estimate: $1.81 (Up from $1.70)
- Revenue Estimate: $19.09 billion (Up from $15.90 billion)
- Valuation: P/E of 30.5x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $249.26. Recent analyst moves include:
- Stephens & Co.: Equal-Weight (Maintains Target to $254.00) (April 7)
- B of A Securities: Buy (Target $200.00) (March 24)
- Mizuho: Outperform (Lowers Target to $320.00) (March 16)
Top ETF Exposure
- iShares Expanded Tech-Software Sector ETF (BATS:IGV): 8.24% Weight
- First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV): 5.44% Weight
- Pacer Data and Digital Revolution ETF (NYSE:TRFK): 8.13% Weight
Significance: Because ORCL carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
ORCL Price Action: Oracle shares were up 3.23% at $175.29 at the time of publication on Thursday, according to Benzinga Pro data.
Photo by Piotr Swat via Shutterstock
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