Oracle and Other Stocks under Scrutiny
While Oracle’s stock seems to be gaining momentum with its recent revenue growth, it’s still quite elevated, according to Victoria Greene, chief investment officer at G Squared Private Wealth. During a segment on CNBC’s “Power Lunch,” she highlighted three companies, two of which are on her buy list, and one she suggests holding onto. Following the announcement of its fourth-quarter results that exceeded analyst projections, Oracle’s stock surged by 13% on Thursday. Greene points out that although the stock is already up 20% for the year, there’s still an opportunity for new investors to jump on board. She remarked, “The train is leaving the station, but you have to jump into stock.” Greene anticipates the stock could reach $300 within the next year, which would imply a substantial 50% increase from Thursday’s close.
In a revenue call after the market closed on Wednesday, CEO Safra Catz mentioned that Oracle’s cloud infrastructure revenue is expected to grow by over 70% in fiscal year 2026. Greene noted the impressive growth rate, especially with ongoing investments in AI through projects like Stargate. “Everyone is investing in this, and it’s built on Oracle,” she stated. Notably, Oracle’s shares reached a 52-week high on Thursday.
On a different note, Greene has been bullish on IBM. She believes the company can see significant growth in the coming years. IBM recently completed a $6.4 billion acquisition of Hashicorp, a multi-cloud infrastructure automation firm. Additionally, in 2023, it acquired software company Apptio. On Tuesday, IBM announced ambitions to create Quantum Starling, a large-scale quantum computer designed to be fault-resistant. Greene emphasized, “They have great strategic partners,” and highlighted the potential for AI to save the company $3 billion. “20% to 30% of the code is currently built into AI,” she mentioned, adding that “this stock touches on everything you want to touch now.” IBM also reached a 52-week high on Thursday, showing an impressive 28% gain this year.
As for Datadog, Greene seems to be more cautious. The stock saw a nearly 3% increase on Thursday following an upgrade from Wolfe Research. However, she prefers to wait until the stock surpasses its 200-day moving average and goes above $123. “There’s a headwind against margins, and we’re managing costs,” she noted, expressing concern about competition. Greene observed that there hasn’t been a substantial uptick in the number of companies increasing their module offerings. Currently, Datadog’s stock is down 14% year-over-year.
