ORCL Stock Jumps After Analyst Says Market Undervalues Its OpenAI Partnership

• Deutsche Bank noted that while the deal brings financial and operational risks, these are offset by the "very real opportunity" that OpenAI offers.
• The shares, at current levels, give Oracle little, if any, credit for its business with OpenAI, a Deutsche Bank analyst said.
• The $300 billion was by far OpenAI's biggest commitment, DA Davidoson noted and added that it made Oracle seem like the winner of a bake-off.

Oracle (ORCL) was the second-most trending ticker on Stocktwits, with the company’s shares rising nearly 2% before the bell after Deutsche Bank noted that the recent pullback in the stock offers an attractive entry point.

The shares, at current levels, give Oracle little, if any, credit for its business with OpenAI, a Deutsche Bank analyst said. The firm noted that while the deal brings financial and operational risks, these are offset by the "very real opportunity" that OpenAI offers.

Deutsche Bank maintained a ‘Buy’ rating on Oracle and a $375 price target, according to TheFly.

OpenAI has reportedly struck an agreement with Oracle, committing to purchase $300 billion worth of computing capacity over five years to power ChatGPT and its AI initiatives.

DA Davidson’s View

Meanwhile, DA Davidson on Tuesday after market close lowered the firm's price target on Oracle to $200 from $300 and kept a ‘Neutral’ rating, according to TheFly. The firm noted that when Oracle reported earnings in September, the company made it seem as if several customers accounted for the increase in Remaining Performance Obligations. Yet, the next day, it was revealed that OpenAI accounted for almost the entire increase.

The $300 billion was by far OpenAI's biggest commitment, DA Davidoson noted and added that it made Oracle seem like the winner of a bake-off. The firm said that, but with more than a trillion dollars of commitments after this announcement, OpenAI made it clear it was "not a serious counterpart" and that Oracle was a pawn in the grand game of “fake it till you make it.”

How Did Stocktwits Users React?

Retail sentiment on Oracle remained unchanged in the ‘bullish’ territory, with message volumes at ‘high’ levels, according to data from Stocktwits.

A user on Stocktwits noted that people were underestimating the “power of Oracle.”

Shares of Oracle have gained over 18% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Nvidia Is Still The ‘Rocky Balboa Of The AI Revolution,’ Says Wedbush’s Dan Ives

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