synopsis

Stephens said it is positive about Oracle’s large market share in key parts of the back office software value chain and its increasing mix of strategic and growing applications but is wary about valuation.

Cloud and database giant Oracle Corp. (ORCL) announced late Tuesday that it has signed a contract with Singapore’s Defence Science and Technology Agency (DSTA)  to provide the “Oracle Cloud Isolated Region” cloud infrastructure.

The contract will enable the Ministry of Defence (MINDEF) and Singapore Armed Forces (SAF) to access high-performance, air-gapped, and secure sovereign cloud computing, data management, and artificial intelligence (AI) services in a secure environment. 

Rand Waldron, Global Defense CTO at Oracle said, “Oracle has safeguarded the world’s most sensitive data for decades. We are pleased to bring this expertise to support the Singapore defence community’s missions.”

Ng Chad-Son, Chief Executive of DSTA, said, “Through this pilot collaboration with Oracle, we will harness advanced cloud and AI technologies to digitalize and transform our operations.”

Oracle has positioned itself among the frontrunners in the AI revolution by joining the $500-billion Stargate AI project, which President Donald Trump announced immediately after his inauguration. 

The project, led by ChatGPT maker OpenAI, Masayoshi Son-led Japanese investment company SoftBank, will have Oracle as one of the key technology partners.

Separately, research firm Stephens initiated coverage of Oracle stock with an ‘Equal-Weight’ rating and a $167 price target, The Fly reported.  The brokerage said it is positive about Oracle’s large market share in key parts of the back office software value chain and its increasing mix of strategic and growing applications.

However, the firm said Oracle’s IT infrastructure opportunities were partially priced in the stock at current levels.

Oracle also announced a collaboration with Nvidia Corp. (NVDA), which envisages integrating Nvidia’s accelerated computing and inference software with Oracle's AI infrastructure and generative AI services to help organizations globally speed the creation of agentic AI applications.

On Stocktwits, retail sentiment toward Oracle stock flipped to ‘bearish’ (43/100) from the ‘bullish’ mood that prevailed a day ago. The message volume also dropped off sharpy to ‘low’ levels.

ORCL sentiment and message volume March 19, as of 2:47 am ET | Source: Stocktwits

A watcher said Oracle’s close below the $150 level makes them bearish on the stock.

Retail traders also discussed the rumors regarding a potential TikTok buy. A Bloomberg report said Oracle was considering a proposal that calls for selling U.S. TikTok, which would guarantee security, and take a small stake in a new American entity while allowing the Chinese short-video app’s parent to retain the algorithm.

Oracle stock ended Tuesday’s session down nearly 3% at $149.45. It is down 10% for the year.

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