Guggenheim Sees Oracle Doubling to $400 Amid Cloud Cohort Slump
Oracle's stock price has plummeted nearly 20% in 2026, with many analysts predicting a sharp rebound. One Wall Street firm, Guggenheim, has set a price target of $400 for Oracle, which would represent more than a doubling of the current stock price. This is based on three key pillars: OCI winning share as a lower-cost AI training and inference platform, the RPO backlog compounding through multi-cloud database partnerships with AWS, Azure, and Google Cloud, and a high-margin migration cycle as on-premise databases shift to Autonomous Cloud Database.
The selloff has been driven by concerns over Oracle's capital spending, which reached $55.66 billion in fiscal 2026 against operating cash flow of just $31.98 billion. This resulted in negative free cash flow of roughly $23.69 billion. However, analysts are looking past this to the company's remaining performance obligation (RPO) backlog, which has grown 363% year over year and currently stands at $638 billion.
Oracle's peers have continued to thrive, with Microsoft, Amazon, and Alphabet all posting double-digit cloud growth in 2026. In contrast, Oracle's stock price has fallen by nearly 28% over the past twelve months, despite its own revenue guidance of 31% CAGR through fiscal 2030.
While some analysts may be cautious about Oracle's debt and equity raises, many see a bright future for the company. With a consensus target of $242 and an implied upside of roughly 52%, Oracle is currently trading at a significant discount to its peers in the cloud cohort.