Oracle (NASDAQ:ORCL) stock has pulled back slightly over the past few days, falling from this month's high of $250 to about $213. Despite the decline, the stock remains nearly 60% above its lowest level of the year as investors turn their attention to the company’s earnings report, which is scheduled for release on Wednesday.

Oracle Stock to React to Q4 Earnings

Oracle, a top player in the software and AI infrastructure industry, will be in the spotlight this week as it releases its earnings. These numbers come a week after Broadcom (NASDAQ:AVGO), another top technology company, published strong numbers. Its weaker-than-expected guidance, however, triggered a broader stock market retreat. 

Oracle's business has been watched closely in the past 12 months because of its soaring Remaining Performance Obligations (RPO), its growing debt, and balance sheet. Its most recent numbers showed that the RPO jumped by 325% YoY to $553 billion, with most of it coming from OpenAI and Meta Platforms (NASDAQ:META).

The results revealed that its revenue jumped by 24% to $17.2 billion, with its cloud figure jumping by 44% to $8.9 billion. Infrastructure jumped by 84% to $4.9 billion, while its cloud applications rose 13% to $4 billion.

While these numbers were good, the company also revealed that it was raising another $50 billion in a combination of debt and equity. At that time, it had raised $30 billion and was yet to start using its at-the-market equity portion. It ended the quarter with over $124 billion in long-term debt, up from $85 billion in the same period last year.

Benzinga Pro data shows that analysts expect the upcoming results to show that its revenue jumped by 20% in Q4 to $19 billion. If this is correct, its annual revenue will be $67 billion, up by 17% YoY. Its annual revenue will then jump to $88 billion in the next financial year.

Analysts have a buy rating for the stock, with the average estimate being $269, up from the current $213. The most recent bull was Cantor Fitzgerald, which boosted its target to $284. BTIG hiked its target to $400.

ORCL Stock Price Technical Analysis

The daily chart reveals that the ORCL stock price formed a double-bottom at $137 and a neckline at $171. A double-bottom is one of the most common bullish reversal signs in technical analysis. 

The stock recently formed a golden cross pattern as the 50-day and 200-day Weighted Moving Averages (WMA) crossed each other. This pullback started when it moved above the 50% Fibonacci Retracement level.

Therefore, the most likely scenario is where the Oracle stock rebounds after earnings. If this happens, the initial target to watch will be at $250. A move above that level will point to further gains towards $300.

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