Investors spent Tuesday selling shares of Oracle (ORCL) after the company’s released its latest earnings report on Monday.
After the close on Monday, Oracle released its latest quarterly results. The company earned $1.47 per share, which was $0.01 less than analysts had forecasted. This is the second quarter of three that the company has missed expectations.
Oracle’s earnings per share figure fell on revenue that was also lighter than forecasted. Revenue grew 8.6% over last year as analysts expected growth of roughly 9%.
On the company’s conference call, management guided next quarter’s revenue and earnings guidance lower that the projected range adding even more pressure to the stock on Tuesday.
Tuesday’s drop in Oracle’s price dropped the stock from all-time highs on Monday to trading below its 50-day moving average on Tuesday.
Monday’s all-time highs were a notable move as they signaled investors were buying the rumor ahead of the earnings report. That optimistic sentiment has turned to soured outlooks for investors.
Looking forward, Oracle stock is likely to find some support at $170. This round-numbered price level served as a launching pad for the post-election rally which drove Oracle shares 15% higher into the earnings report.
Failure at $170 will target further declines to $160, however investors are likely to use the decline to add to position given Oracle’s long-term positioning in the cloud computing and AI industry.
Oracle shares maintain a long-term bullish outlook with a price target of $240.
