Analyst on Oracle (ORCL): 'Co-CEO Roles Don't Really Work'

We recently published 10 Stocks Everyone’s Talking About As AI Investments Continue. Oracle Corp (NYSE:ORCL) is one of the stocks analysts were recently talking about.

Brent Thill from Jefferies recently said in a CNBC program that the timing of Oracle Corp (NYSE:ORCL) appointment of co-CEOs is right and the company is at the beginning of the AI wave. However, the analyst said having two CEOs usually doesn’t “work.”

“I think the real question becomes co-CEO roles don’t really work. Look at Salesforce, didn’t really work. Look at SAP, didn’t work. And so I think the real question investors are going to have, and you can hear them on the earnings call, they’re tripping over each other. You know, someone tries to talk and someone jumps in. I mean, you already see that just even in the conference.”

Thill, however, added that the two executives have different lines of expertise and overall, the appointments will be good for Oracle Corp (NYSE:ORCL).

“The team’s been together and they’ve been working together for well over a decade, all of them. So, this isn’t bringing someone new in and clearly I think the division lines of the CEOs are very different in terms of their focus areas. So, that’ll be good. While one’s clearly in one area of the kitchen, the other one’s in the other area. So, there shouldn’t be too much running into each other.”

Oracle shares recently fell after a report showed its Nvidia-related margins are not impressive. Why are some analysts reluctant about the Oracle-OpenAI deal? OpenAI is expected to burn about $115 billion over the next four years and is not projected to be profitable until 2030. Even after Nvidia’s latest $100 billion investment by Nvidia,  OpenAI will likely need to raise over $200 billion in total funding to cover its commitments. Some analysts believe Oracle may need to borrow tens of billions to build enough data centers for the deal.

Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its second quarter 2025 investor letter:

Software database company Oracle Corporation’s (NYSE:ORCL) quarterly results surprised to the upside, and the company ended the quarter by announcing a massive cloud deal that could generate up to $30 billion in annual revenue over the next few years. All in, shares re rated over 50% during the quarter. The company remains early in its accelerating growth inflection and is benefitting from a number of tailwinds across cloud, database and applications.

While we acknowledge the potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.