Oracle (ORCL)

The momentum is white hot and the valuation is lot cheaper than Adobe's.

An attractively priced way to play AI.

RPOs are up 44%, or $98 billion. An AI winner.

They just reported weaker sales and earnings numbers, but their cloud business--their data centre business is huge and rapidly growing.  Their backlog is nearly $100 billion. Gen AI is real. Rallied over 13% today.

It reports Tuesday. He added shares recently. It benefits from AI, cloud computing and data centres. All of them. Trades at a sedate 20x forward PE. Expects upgrades.

It was down 5% yesterday after Salesforce's negative report. CRM's weak guidance won't impact Oracle's business. After Nvidia's infrastructure buildout, Oracle is next in line in this buildout, given their data centre buildout and the AI services they offer. Oracle will build these for Elon Musk's xAI among many other announcements. He added shares last week and today is a great time to step in.

Unsure on outlook of business. 

They had a good quarter and can go higher. He gave up too soon on this.

Tough, because both are very fully priced. On any pullback of MSFT to around $410, you could pick it up.

ORCL is already through his price target. But he likes it so much, he's been selling calls against it. His 12-month price target was $126, and here it is almost $127. Running on all cylinders on both cloud and software.

If you own either, write calls. But if they roll over 5%, pick some up.

They screwed up their last two quarters, but delivered on their last, share up big because of AI. The CEO is good. He should have had more faith. Shares will likely keep rising and remain inexpensive.

They had a bad quarter due to the impact of data centres they're building to fuel future growth. He wants an update about this and its effect on their margins. These centres are key to their long-term growth. A good hold now.

He took a loss on this after the company reported a bad quarter, even though ORCL insisted it was a good quarter. He has no time for such companies.

Reports Monday. A solid software company that trades at a reasonable PE and rarely misses earnings. But last time, they disappointed and shares plunged from $126 to $100. Some felt they overpaid for a second-tier electronic records company. Some feel they will leverage their huge data centre group into a gen-AI powerhouse. Wall Street has fallen back in love with AI, which has helped stocks recover.

His 12-month price target is $132. Last report beat on top and bottom, but conservative guidance. Behemoth. Lots of AI partnerships. Cross-selling. Trim in mid-$120s. Re-enter at $110 and $105. Probably won't go below $100.

The CEO says that its data centre cloud AI business is on fire, which he believes. Also, this trades at only 19x PE and shares are well off its highs.