Oracle Corporation (ORCL) shares plummeted 5% in Thursday's trading session, following a target price cut by Melius Research. The firm reduced its price target for Oracle from $188 to $180, signaling potential concerns about the company's near-term prospects.

The downward revision comes amid mixed sentiments about Oracle's growth trajectory. While some investors remain optimistic about the company's cloud infrastructure and software-as-a-service (SaaS) segments, others are cautious about the pace of revenue acceleration. Oracle recently surprised investors by announcing an ambitious 2029 revenue target of $104 billion, implying an acceleration in annual revenue growth to approximately 16% from current levels of 9%-10%.

Despite the day's sharp decline, Oracle's stock has shown resilience over the past year, with shares gaining 17.45% over the last 52 weeks. Investors will be closely watching Oracle's performance in its cloud and SaaS businesses, as well as its ability to transition its on-premise database customers to higher-margin cloud solutions, to gauge whether the company can meet its lofty growth targets and justify its current valuation.