Oracle Corp. (ORCL) wants to make a strategic pivot into AI by reworking its Fusion cloud suite – the software large enterprises use for financial management, factory planning, procurement, and more. Time to buy Oracle? I’m not so sure, says Keith Fitz-Gerald, editor of 5 With Fitz.
Instead of employees navigating multiple systems, Oracle thinks it can get users to pose a business question and let AI handle the rest. The system will pull data not only from Oracle’s applications, but from connected third-party software as well, to execute tasks like data entry, invoice processing, research, and even recommendation generation.
Oracle Corp. (ORCL)
According to VP Steve Miranda, tasks like typing invoices and purchase orders are low-value and will be fully taken over by AI. That will leave humans with the higher-level decision-making processes, such as supplier negotiation or supply chain risk management.
While everyone’s debating whether AI is overhyped or when the bubble will bust, it’s continuing to replace real processes inside companies. And it’s already driving real bottom-line impact — with large customers reporting hundreds of millions in annual savings, while Oracle’s AI-fueled cloud backlog has exploded to $553 billion.
BoA just reinstated a “Buy” rating and slapped a new $200 target on the stock. It has fallen by roughly 51% over the past six months and seems to be basing at around $150. That’s why I’d rather see investors use LEAPs (than buy the stock itself)…to keep both risk and costs lower.
Or – my preference – simply buy a better choice with a considerably better upside and a fraction of the doubt that seems to cloud Oracle’s every move these days.
