Oracle stock may rise 200% in five years

Oracle has seen strong stock performance over the past five years, increasing by 230%. This is significantly better than the Nasdaq Composite, which grew by 143%. However, in 2025, Oracle's shares have fallen by 7%, matching the Nasdaq's drop. The company's latest quarterly results disappointed investors on March 10, causing some concern despite a recent recovery. The financial report showed an 8% rise in revenue, but this fell short of Wall Street expectations. Oracle's management also offered a cautious forecast for the next quarter. Despite the short-term struggles, investors might see this as a chance to buy shares, as there are signs of future growth. Oracle benefits from a booming demand for cloud services, especially for artificial intelligence. This was reflected in a 62% increase in its remaining performance obligations (RPO) to $130 billion. RPO represents unmet contract values and has grown faster than the company's revenue. Management stated that Oracle's cloud services are among the most competitive, offering quicker and cheaper solutions than rivals. With the cloud infrastructure market projected to reach $580 billion by 2030, Oracle appears well-positioned to capture significant market share. Looking ahead, Oracle expects revenue growth to accelerate, forecasting a 15% increase next fiscal year and 20% the year after. This could result in revenues exceeding $79 billion by fiscal 2027, surpassing analyst predictions. Additionally, Oracle plans to double its data center capacity in the current fiscal year and triple it the following year. This increased capacity should allow the company to fulfill growing demand and improve its bottom line. Management previously estimated that earnings could grow at over 20% annually until fiscal 2029, but they now anticipate even better results. If Oracle achieves a 25% growth rate, earnings per share could reach $18.31 by 2030. Currently, Oracle's stock is priced at 21 times its earnings, lower than the Nasdaq-100's 25 times. If the market values Oracle at 25 times earnings in five years, the stock price could potentially rise to $458, representing a nearly 200% increase. Overall, analysts suggest that Oracle is a strong investment opportunity, especially after its recent stock price drop.