Stocks to Watch Today: Oracle and JP Morgan Chase
Wall Street saw divergent fortunes for tech giant Oracle (NYSE: ORCL) and banking behemoth JPMorgan Chase (NYSE: JPM) on Tuesday, as investors responded to earnings results and executive statements. Oracle shares surged on AI-driven growth, while JPMorgan fell amid tempered expectations for interest income.
Oracle Corporation (ORCL) Shares Skyrocket on AI Results
Oracle shares skyrocketed more than 10% on Tuesday, reaching $156.07 by early afternoon trading. The company’s first-quarter results exceeded analyst expectations, with overall revenue hitting $13.31 billion. Cloud product revenue, a key growth driver, jumped 21% to $5.6 billion.
The software company’s push to integrate artificial intelligence into its cloud services has paid dividends, positioning Oracle as a more affordable alternative to tech giants Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN). Strategic partnerships with rival cloud providers, including Amazon Web Services and Google Cloud, have further bolstered Oracle’s market position.
If current gains hold, Oracle could add approximately $39 billion to its market value. The stock has outperformed the broader tech sector this year, rising over 32% and prompting at least 10 brokerages to raise their target prices since Monday.
JPMorgan Chase & Co. (JPM) Shares Plummet After Bank Lowers NII Expectations
In contrast, JPMorgan Chase shares tumbled about 6% to $202.97, following cautionary statements from bank president Daniel Pinto regarding interest income expectations. The bank had previously projected its Net Interest Income (NII) to reach $91 billion this year, excluding its markets division.
Pinto described current NII forecasts as “a bit too high” without offering a revised estimate, suggesting that next year could be “a bit more challenging” for the banking giant. Despite the gloomy outlook, he indicated that investment banking fees could rise by 15% in the third quarter, while trading revenue is expected to remain flat or increase slightly.
The pessimistic forecast triggered a broader sell-off in bank stocks, with the KBW Bank Index falling 3.5%. JPMorgan’s cautious stance follows similar guidance from Goldman Sachs, whose chief executive warned of a potential 10% drop in third-quarter trading revenue.
As of 1:25 PM EDT, JPMorgan’s market capitalization stood at $577.272 billion, with a price-to-earnings ratio of 12.09. Despite the day’s losses, the stock has still outperformed the S&P 500 year-to-date, with a 21.40% return compared to the index’s 14.78% gain.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. Stock prices quoted at the time of writing (01:25 PM EDT).
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