BNP Paribas Expects Oracle to Hike Capex Guidance Ahead of Earnings
BNP Paribas analyst expects Oracle to increase its capex guidance for fiscal 2027 during its upcoming earnings release to fulfill Project Stargate obligations. The stock fell 10% today.
Oracle (ORCL) shares tumbled 10% today after a BNP Paribas analyst predicted the company would raise its fiscal 2027 capital expenditure guidance ahead of its earnings report. The expected increase is tied to Oracle's commitments under Project Stargate, a massive infrastructure initiative.
Recommendation Change
The analyst did not explicitly change the rating or price target, but the expectation of higher capex spooked investors concerned about cash flows.
Analyst Rationale
The BNP Paribas analyst believes Oracle will need to boost its capex guidance for fiscal 2027 to cover Project Stargate commitments. The project requires significant investment in cloud and AI infrastructure.
Context
ORCL stock dropped 10% in today's session, reflecting market anxiety over rising expenses. Other analysts have not yet commented on this forecast. The stock has been volatile over the past month as investors await the upcoming earnings report.
What to Make of It
Higher capex may support Oracle's long-term growth plans but pressures near-term profitability. Investors are watching for official guidance in the earnings release.
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