Oracle Q4 2021 earnings recap

$Oracle Corp(ORCL.US) shares are down on Wednesday, after the software company reported fourth-quarter results that weren't seen as strong enough to justify a recent rally. Analysts also note the impact of higher capital expenditures.

Ratings

Citi (neutral, PT $80)

• While the quarter featured "accelerating back-office cloud application growth and stable infrastructure performance, the biggest drivers of revenue upside were from lower-quality factors"

• The report shows "growth, but at a less reasonable price," and the growth is coming alongside "significant increases in spending" that could weigh on operating margins

Oppenheimer (market perform)

• While Oracle's outlook calls for an acceleration in growth, this will require higher capital expenditures

• "Shares have priced in an acceleration of growth, but not necessarily the corresponding investments"

Jefferies (hold, PT to $80 from $75)

• While the results were encouraging, they came against easy year-over-year comparisons and benefiting from seasonal strength

• The stock can't sustain its rally on low single-digit growth

Adobe Q2 2021 earnings recap

$Adobe Inc(ADBE.US)$ analysts are positive on the software company after it reported second-quarter results that beat expectations and gave a profit forecast that was ahead of the consensus view. A number of Wall Street firms raised their price targets, writing that the results show broad-based strength.Shares up as much as 3.4%, with the stock at an intraday record

Ratings

Citi (neutral, PT $575)

• The results "showed signs of building momentum," with accelerating revenue in the company’s Digital Experience group

• "Despite some concerns around reopening trends, ADBE clearly delivered," although given the valuation, "the durability of growth should come back into focus"

Morgan Stanley (overweight, PT to $610 from $575)

• The report "well illustrates why the stock sits atop the list of 'growth at a reasonable price' software names we find very attractive in software"

• Positives in the Digital Media business "show building momentum in Adobe's core earnings engine"

Oppenheimer (outperform, PT to $600 from $550)

• The results "show the company executing well against its strategy of offering a complete customer experience platform"

• Given strong tailwinds, the valuation can hold up over the summer "as investors start looking forward to the seasonally stronger second half"

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