TLDR Oracle started construction on its $4.5 billion global headquarters in Nashville. ORCL stock was down about 1% on Thursday, according to the report. Bernstein reaffirmed an Outperform ra
Oracle (ORCL) stock was down 0.78% on Thursday as the company broke ground on its new Nashville headquarters. The same day, the project got its official start.
The company is putting $4.5 billion into the campus on the city’s East Bank. It is meant to house engineering, technical and healthcare technology workers.
Executives showed up in force. Oracle CEOs Mike Sicilia and Clay Magouyrk attended, along with Tennessee Governor Bill Lee and Nashville Mayor Freddie O’Connell.
Governor-elect Marsha Blackburn and US Senator Bill Hagerty were also there. Deputy Governor Stuart McWhorter rounded out the guest list.
Magouyrk called the groundbreaking “an important next step” in Oracle’s commitment to Nashville. He thanked the city and its leaders for helping the company reach this milestone.
The site spans about 78 acres and holds 23 buildings. Together they offer 759,838 square feet of office space.
Foster + Partners designed the campus on a former industrial site. Plans call for more than 1,900 trees and a LEED Gold certification bid.
Perks are part of the package. The plan includes shops, a 120-room Nobu hotel and restaurant, an amphitheatre and a six-acre lake.
The first buildings are expected to open by 2030. Oracle also expects to hire thousands of workers during the build.
Oracle set aside $175 million for public infrastructure. That covers a pedestrian bridge of about 860 feet over the Cumberland River, a public park, greenway links and road upgrades.
Governor Lee said the decision reflects the strength of the state’s workforce and business climate. He added that the project will bring high-quality jobs to Tennesseans.
The company also made community pledges. It gave $1.55 million to Trinity Community Commons and $150,000 in grants to 30 local nonprofits.
A $10 million partnership with the Nashville Symphony lets the orchestra resume its 2026-27 season.
On Wednesday, Bernstein reaffirmed its Outperform rating and $325 price target on Oracle. Analyst Mark Moerdler said the recent selloff overshadows improving long-term fundamentals.
Oracle stock now trades at nearly half its year-to-date high from early June. Moerdler argues that worries about heavy capital spending hide the bigger AI opportunity.
He does not expect Oracle to need more outside funding. He estimates the company is about 18 months from positive free cash flow, which he expects in the back half of fiscal 2028.
Bernstein also pointed to a possible OpenAI IPO as a catalyst. Moerdler said it could show whether the AI ecosystem can support its huge computing commitments.
Oracle trades at about 5 times sales, which Moerdler called a discount to historical averages. The stock also pays a dividend yield of 1.55%.
Barchart lists the consensus rating as “Strong Buy.” The mean price target of about $243 points to upside of more than 85% from current levels.
The post Bernstein Stays Bullish on Oracle (ORCL) Stock With a $325 Price Target appeared first on Blockonomi.
