11:50 AM EDT, 10/23/2024 (MT Newswires) -- Oracle (ORCL) faces increasing competition from hyperscale cloud vendors and concerns about the long-term sustainability of recent growth drivers, notably cloud infrastructure and generative artificial intelligence, RBC Capital Markets said Wednesday in a report.

Cloud competition looms from Amazon.com ( AMZN ) , Microsoft ( MSFT ) and Alphabet's Google ( GOOG ) , as well as database vendors including MongoDB ( MDB ) , RBC said in a 50-page report initiating coverage of Oracle, the world's biggest database company.

While research indicates that Oracle is competitive on core storage and computing against hyperscale cloud vendors, often at lower prices, "we

have concerns over the sustainability of this growth, especially for

non-Oracle customers," RBC said.

"Our checks support our skepticism on Oracle's GenAI announcements, especially when compared to the innovation taking place at Microsoft ( MSFT )," RBC said.

RBC has a sector perform rating on Oracle with a $165 price target.

Oracle shares fell 0.2% in recent Wednesday trading.

Price: 175.00, Change: -0.31, Percent Change: -0.18