When database software giant Oracle (ORCL) posted fiscal first-quarter results, it did not exceed analyst expectations. But markets latched onto the RPO figure, or remaining performance obligation, to send ORCL stock to a high of $345.72.
ORCL stock closed at $292.18 last week, up by 25.51%. This set founder Larry Ellison as the richest person in the world. He surpassed Tesla (TSLA) CEO Elon Musk’s net worth. Musk took the richest person title in 2021. However, Amazon’s (AMZN) Jeff Bezos took the title, along with LVMH’s Bernard Arnault. When Tesla shares recovered, Musk took back the title.
ORCL stock could fade from its rally, but so might Tesla’s stock. Moreover, Tesla’s headwinds in its core business suggest that Tesla’s stock will lose momentum.
TSLA stock bottomed in the low $225 range in March. Shares broke out last week after it gained 12.85%, closing at $395.94. The company plans to reward CEO Musk $1 trillion if he achieves several performance metrics. This includes meeting annual electric vehicle sales targets.
Unfortunately, the impact of Musk’s involvement in funding Trump’s election, DOGE, and the fallout afterward hurt Tesla’s brand.
Tesla shares now behave like a “meme” stock, where it relies on momentum. Promises to take market share in the robo cab market and launch full, not partial, self-driving software may not play out. That would send TSLA stock into a longer-term downtrend.
