DA Davidson cuts Oracle (ORCL) PT to $200 after announcing that a single customer, OpenAI, drove RPO increases

Oracle Corporation (NYSE:ORCL) is one of the most promising stocks with great upside potential. On November 25, DA Davidson lowered the company’s price target on Oracle from $300 to $200 and gave the stock a neutral rating. The company noted that when announcing Q1 2026 results, the company initially noted that the increase in remaining performance obligations/RPO was driven by several customers. However, the next day it turned out that almost all of the RPO increase was due to a single customer: OpenAI.

Although the $300 billion commitment was OpenAI’s largest at the time and made Oracle appear as if it had won a significant deal, the company argues that OpenAI’s subsequent announcement of $1 trillion in commitments showed that it was not a serious opponent and had effectively used Oracle as a pawn in a grand strategy of self-promotion.