Oracle Jumps 5% as Morgan Stanley Lifts Price Target — SkimNews
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- Oracle rose 5% to $167.15 in early trading after Morgan Stanley raised its price target, with CoreWeave gaining 3% to $92.20 on the same AI infrastructure tailwind while the SPDR S&P 500 ETF Trust fell 0.12%.
- Morgan Stanley's re-rating effectively underwrites Oracle's aggressive capital plan: roughly $40 billion in planned debt and equity raises for FY2027 against FY2026 free cash flow of negative $23.7 billion and $55.7 billion in capex.
- Oracle's Q4 FY2026 report on June 10 showed Cloud Infrastructure revenue up 93% year-over-year to $5.79 billion, with Remaining Performance Obligations surging 363% to $638 billion — including $75 billion tied to prepaid or customer-supplied GPU AI contracts.
- Oracle management confirmed a $90 billion FY2027 revenue target and raised non-GAAP EPS guidance to $8.05, but the stock was still down 14% year-to-date through Monday's close, making today's move a recovery lift off a weak stretch.
- CoreWeave's year-to-date is sharply different: shares entered the session up 28% YTD, with Q2 2026 revenue of $2.6 billion (up 112% YoY), a backlog near $104 billion, and full-year 2026 capex guidance of $35 billion to $39 billion.
- CoreWeave CEO Michael Intrator said demand continues to intensify across sectors, geographies, workloads and generations of GPU architecture, with management raising year-end active-power expectations above 1.85 gigawatts.
- Oracle's scheduled Q1 FY2027 earnings release, confirmed on September 2, is the next hard catalyst — the RPO figure Morgan Stanley is now underwriting, where reported cloud growth and backlog trends will extend or unwind Tuesday's 5% move.
Why it matters: Morgan Stanley's re-rating underwrites Oracle's $40 billion capital plan despite negative $23.7 billion FY2026 free cash flow on $55.7 billion of capex. Oracle's scheduled Q1 FY2027 earnings is the next hard test, and that single RPO figure has driven the AI cloud narrative all year — with shares still down 14% YTD heading into the report.
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