13 Best American Tech Stocks To Buy According to Short Sellers

2. Oracle Corporation (NYSE:ORCL)

% of shares shorted: 0.68%

Oracle, a software industry titan, offers enterprise resource planning software and on-premises relational database technologies that are unparalleled in quality. Its profitability is unmatched in the market. However, as more clients skip Oracle’s products and move their workloads to the cloud, growth has been slow. According to analysts, the company might face challenges from cloud competitors even with its efforts to migrate to the cloud.

However, Wedbush’s Dan Ives is optimistic about the stock in the wake of the AI revolution and its knock-on effects. Ives listed Oracle Corp (NYSE:ORCL) as one of the companies he believes will profit from the AI revolution.

Despite reporting weak fiscal Q4 2024 numbers, the American tech firm continued to persist following the announcement of AI agreements with Microsoft and OpenAI to integrate Azure AI with Oracle Cloud. Oracle and Google Cloud have teamed up to provide high-speed network interconnects and OCI database services. In addition, double-digit revenue growth was forecast by management for the fiscal year 2025.

Mar Vista Global Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q2 2024 investor letter:

“Oracle Corporation (NYSE:ORCL) is seeing revenue acceleration as it benefits from several years of investing in cloud-based solutions that are now driving demand. Oracle’s OCI offering is recognized as a viable hyper scaler offering and is winning mindshare from leading cloud customers including Open AI. This is driving accelerating demand as it offers a strong value proposition to customers due to its favorable performance and cost metrics. This coupled with Oracle’s recently announced partnerships with Microsoft Azure and Google Compute Platform, which could help facilitate the migration of the Oracle Database to the cloud. We believe this should support a third leg of growth for Oracle as its large installed base of database customers shift from on-premise to cloud deployments. As database customers migrate to the cloud, Oracle could increase database software support revenues by two-to-three times. We continue to believe Oracle is well positioned to grow intrinsic value low-double-digits over our investment horizon.”

The 24 analysts have a buy rating and an average target of $146.54, an upside of 4.11%.