Billionaire Philippe Laffont Is Betting Big on Oracle Stock. Should You?
Tech giants have long been a favorite hunting ground for billionaire hedge fund managers seeking stable growth and exposure to transformative trends. From cloud computing to artificial intelligence (AI), these companies often deliver the kind of scale, recurring revenue, and innovation that Wall Street loves. One such giant is Oracle (ORCL), a software and cloud infrastructure leader that’s steadily carving out a bigger role in the AI-driven enterprise landscape.
Recently, billionaire Philippe Laffont’s Coatue Management made a bold move by acquiring roughly 3.86 million shares of Oracle, worth about $843.3 million. This sizable bet signals strong confidence in Oracle’s growth trajectory, as the company expands its cloud and AI offerings to compete with industry heavyweights like Microsoft (MSFT) and Amazon (AMZN).
Let’s take a closer look at whether Oracle’s momentum and strategic moves make it a stock worth holding now.
Based in Austin, Texas, Oracle is a tech company and a global leader in enterprise software and cloud solutions, steadily building its position in 2025. Its push into AI, growing cloud infrastructure, and partnerships have fueled strong demand. Oracle hit an all-time high this year, driven by major AI projects and a key cloud deal, putting it among the top cloud providers. With its powerful Software-as-a-Service (SaaS), database, and Oracle Cloud Infrastructure (OCI) offerings, Oracle is well-positioned for AI-driven growth.
Valued at $690 billion by market cap, Oracle has been one of the top performers in 2025, climbing about 47% year-to-date. The rally has been fueled by surging demand for cloud computing and AI services, with cloud sales posting sharp gains. Strong growth in future bookings, record annual revenue, and aggressive multi-cloud partnerships have further strengthened investor confidence.
Oracle is rapidly expanding its cloud business, which now has the biggest part of its revenue. Demand for its cloud services, like OCI (infrastructure) and SaaS (Fusion/NetSuite), is also rising thanks to partnerships with AWS, Microsoft (MSFT) Azure, and Google (GOOGL) Cloud. CEO Larry Ellison said Oracle now has dozens of OCI regions running on Azure and Google, plus a new AWS deal using its Exadata hardware. The company is also investing heavily in AI, building a huge Nvidia (NVDA) powered data center and signing $3 billion worth of new cloud-GPU contracts.
Recently, Oracle expanded its Google Cloud partnership to add Gemini 2.5 AI models, letting customers use top AI tools from multiple providers through Oracle’s platform.
On top of that, BNP Paribas Exane says Oracle will play a bigger role in the Stargate Project, supplying 4.5 gigawatts of data center power to OpenAI. This deal could bring in $30 billion to $60 billion a year and shows how major cloud providers are leading the AI race.
Oracle’s latest earnings paint a clear picture of a company riding strong momentum. In Q4, the tech giant smashed analyst expectations, reporting $15.9 billion in revenue, up 8% year-over-year, and delivering EPS of $1.35, beating estimates of $1.30.
The real growth engine was its cloud business. Infrastructure-as-a-Service (IaaS) revenue surged 52% in the quarter, while SaaS rose 12%, pushing total cloud revenue to $6.7 billion, a 27% annual increase. Oracle’s remaining performance obligations, a key indicator of future booked business, jumped 41% to $138 billion, signaling sustained demand ahead.
Management expects the momentum to accelerate. CEO Safra Catz projects total cloud growth above 40% in FY2026, compared to 24% in FY2025, while Chairman Larry Ellison anticipates triple-digit growth in multi-cloud database revenue from major partners such as AWS, Google, and Microsoft Azure.
The balance sheet also stayed strong, with operating cash flow climbing 12% to $20.8 billion for the year, highlighting robust cash generation. For the current quarter, Oracle forecasts revenue growth of 12% to 14% to roughly $15 billion, with adjusted EPS between $1.46 and $1.50, broadly in line with Wall Street expectations.
Last month, Evercore ISI named Oracle the “fourth global hyperscaler” alongside AWS, Google Cloud, and Microsoft Azure, citing a $30B AI cloud deal by FY2028, strong OCI growth, and rising database migrations. The firm raised its price target to $270, noting Oracle’s accelerating cloud-driven revenue momentum.
Similarly, on Aug. 5, BofA’s Brad Sills lifted Oracle’s price target 34% to $295, keeping a “Neutral” rating.
Overall, ORCL holds a bullish “strong buy” consensus from 36 Wall Street analysts tracked by Barchart. While the group’s mean price target of $248 suggests just a 1% upside from current levels, the Street-high target of $325 points to a potential 33% gain.
On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
