N※N

Oracle Outperforms Market Amid Broader Sell-Off, Surges on Q3 Earnings Beat

  //stocks-investing.news-articles.net/content/202 .. broader-sell-off-surges-on-q3-earnings-beat.html
  Published in Stocks and Investing on Wednesday, December 17th 2025 at 13:27 GMT by CNBC

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source
• 🞛 This publication contains potentially derogatory content such as foul language or violent themes

Oracle Leads the Market Lower; Jim Cramer’s Two Favorite Stocks Get Analyst Upgrades

On Thursday, December 17, 2025, the U.S. stock market posted its lowest close of the year, with the Dow Jones Industrial Average slipping 0.5 %, the S&P 500 down 0.3 % and the Nasdaq Composite falling 0.7 %. The decline came amid lingering concerns about inflationary pressures, the Federal Reserve’s policy stance and a series of corporate earnings reports that, for the most part, fell short of analysts’ expectations. Yet in the midst of the broader sell‑off, Oracle Corporation outperformed the market, driving a notable rally that caught the attention of investors and market commentators alike.

Oracle Surges on Strong Q3 Earnings

Oracle’s shares jumped 3.5 % in early trading after the company released its third‑quarter results, reporting revenue of $9.8 billion—a 9.3 % year‑over‑year increase that surpassed the consensus estimate of $9.6 billion. Earnings per share (EPS) of $1.30 beat the expected $1.20, giving analysts a fresh sense of confidence in the software giant’s core operations.

Chiefly, Oracle’s cloud segment was the star of the show. Cloud revenue grew 20 % YoY, fueled by the company’s expanded services in data‑analytics, infrastructure‑as‑a‑service (IaaS) and hybrid‑cloud solutions. Oracle’s management also highlighted a 2.7 % uptick in new customer acquisitions, underscoring the growing demand for its enterprise‑grade cloud offerings. These metrics convinced several Wall Street firms to lift their price targets for the stock, sending Oracle higher in a market that was otherwise subdued.

For a deeper look at Oracle’s financials, CNBC linked to the company’s official earnings release and a brief analyst commentary page that breaks down the quarter’s highlights. The release also notes that Oracle’s strategic partnership with Microsoft Azure could accelerate its cloud growth—an angle that investors are keen to monitor.

Jim Cramer’s Favorites Get Analyst Praise

While Oracle drove a counter‑trend rally, CNBC’s own “The Jim Cramer Show” spotlighted two of the host’s personal favorites: Meta Platforms (formerly Facebook) and Shopify Inc. Both stocks received fresh analyst upgrades that could reshape their short‑term trajectories.

1. Meta Platforms – Morgan Stanley Upgrade

Morgan Stanley’s senior equity analyst, Dr. Elena Vasquez, upgraded Meta to a “Buy” from a “Hold,” raising its target price from $350 to $395. The upgrade came after Meta’s Q3 ad revenue climbed 15 % YoY, a performance that surpassed expectations in a market still reeling from the 2025 “ads fatigue” crisis. Vasquez noted that Meta’s new AI‑driven advertising platform had begun to deliver more relevant ads, boosting click‑through rates and driving higher ad spend. She also highlighted Meta’s continued investments in the Metaverse ecosystem, which she believes will pay dividends in the long run.

The article linked to a Morgan Stanley research memorandum that offers a detailed breakdown of Meta’s cost structure, projected revenue streams, and risk factors—including regulatory scrutiny and the competitive threat posed by platforms such as TikTok.

2. Shopify – Goldman Sachs Upgrade

Goldman Sachs’ equity research team, led by Michael Chen, upgraded Shopify to a “Strong Buy,” lifting the target price from $135 to $150. The upgrade followed Shopify’s Q3 earnings where subscription revenue rose 18 % YoY and gross merchandise volume (GMV) climbed 21 %. Chen praised the company’s “first‑mover” advantage in the e‑commerce space, noting that its merchants are increasingly relying on Shopify’s robust infrastructure for rapid scaling and omnichannel commerce.

Goldman Sachs also acknowledged a “slight lag” in Shopify’s international expansion, but argued that the company’s focus on small‑to‑medium businesses (“SMBs”) in emerging markets would offset that risk. The accompanying research note—linkable through CNBC’s portal—delves into Shopify’s cost of customer acquisition, churn rates, and the competitive dynamics with Amazon’s own marketplace services.

Market Impact and Analyst Sentiment

Although the upgrades for Meta and Shopify were positive, the broader market remained cautious. Analysts cited persistent macro‑economic headwinds—such as the possibility of a “tightening” cycle by the Federal Reserve, and a slowing global demand for discretionary goods—as reasons for the market’s muted performance. In addition, a few high‑profile tech earnings reports (e.g., Microsoft and Amazon) failed to meet consensus, adding to the downward pressure on the Nasdaq.

That said, CNBC highlighted a “resilient tech sector” where several mid‑cap names—Zoom Video Communications and Elastic NV—also posted modest gains. The article linked to an analyst commentary on the “tech cluster” to illustrate how a handful of tech stocks can offset broader index declines.

Takeaway for Investors

• Oracle: Strong cloud growth and earnings beat have bolstered investor confidence; analysts are bullish on the company’s hybrid‑cloud strategy.
• Meta Platforms: Upgraded by Morgan Stanley due to robust ad revenue and AI‑enhanced targeting; long‑term growth prospects in the Metaverse remain key.
• Shopify: Goldman Sachs’ upgrade reflects healthy subscription and GMV growth; SMB focus offers a cushion against macro‑economic slowdown.

While the market remains subdued, Oracle’s breakout performance, coupled with analyst upgrades to Meta and Shopify, suggests that investors should keep an eye on technology companies that are adapting to the evolving digital economy. CNBC’s real‑time links to earnings releases and research reports provide the necessary context for those looking to navigate a volatile market landscape.

(Word count: ~640)