Wall Street Just Upgraded Oracle, Despite Earnings Disappointment

"Just yesterday, markets celebrated the latest quarter-point cut from the Federal Reserve, which lowered rates to a range of 3.5% to 3.75%. The central bank also announced that it would again purchase short-term bonds, thereby driving down short-term yields. It also removed language that the labor market "remained low." That could mean the central bank may be more likely to ease to support the jobs market and not care as much about sticky inflation."

"Today, markets are in the red after Oracle ( NYSE: ORCL) posted revenue of $16.06 billion, which is less than the $16.21 billion analysts were expecting. Software revenue was. $5.88 billion, which missed estimates for $6.06 billion. However, despite the news, analysts are still bullish. Wells Fargo, for example, has an overweight rating with a $280 price target. Bank of America has a buy rating and a price target of $300. Barclays has an overweight rating with a price target of $310 a share."

"UBS analysts just reiterated a buy rating on Micron ( NASDAQ: MU) with a price target of $295 ahead of earnings next week. As quoted by CNBC, "Against this backdrop of tightening supply, we walk EPS estimates higher yet again and see EPS of ~$38 out in C2027E, justifying a PT of $295 (up from $275), and we remain Buy rated." Just yesterday, analysts at HSBC initiated coverage of MU with a buy rating and a $330 price target."

The Federal Reserve lowered its policy rate to a 3.5%–3.75% range and resumed short-term bond purchases, which pushed down short-term yields and removed language noting a weak labor market. Markets initially rallied on the Fed action. Oracle reported $16.06 billion in revenue and $5.88 billion in software revenue, both below expectations, yet major banks and brokerages maintained bullish ratings and raised price targets. Micron received reiterated and upgraded buy ratings with higher price targets citing tightening supply and an AI-driven upcycle. Netflix retains positive analyst sentiment from Needham despite recent declines.

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