Josh Brown sees a 'breakout' ahead for one particular tech stock

Published Thu, Mar 9 20232:45 PM ESTUpdated Thu, Mar 9 20232:47 PM EST

Hakyung Kim @https://www.linkedin.com/in/hakyungkim/@hakyungkim_

Ritholtz Wealth Management CEO Josh Brown said that he recently bought shares of computer software company Oracle ahead of its upcoming earnings report. He said that he's in the stock for the long term. "This is a combination of the stock where the fundamentals are aligning with the technicals. I see a technical breakout, barring some sort of massive miss in earnings, which of course, would obliterate the technical case," Brown said on CNBC's " Halftime Report ." Oracle is scheduled to release its fiscal third-quarter earnings after the close on Thursday. Analysts polled by FactSet have set their consensus per-share earnings and revenue estimates to $1.20 and $12.43 billion, respectively. The company's shares were down 1% on Thursday afternoon, amidst a 7% rise in 2023. Brown added that even if the stock falls after a disappointing earnings report, he will stick with it. "This is a relatively new position for me. It's not a trade — it's an investment," he said. "I don't need a breakout anytime soon." However, Brown said that the stock has already shown strong revenue growth. Indeed, Oracle posted revenue growth in both of its latest quarters , he said. "There's not a lot of that going on right now elsewhere in this space," Brown added. "So I think Oracle is safe to hold through earnings." He also noted that it is showing more promise than its competitors. "It's held in there better than almost any other large-cap tech stock that you could think of, and the reason why is that this is a company that very quietly is taking market share in the cloud and consistently delivering," said Brown. Virtus Investment Partners' senior managing director Joe Terranova named another tech company, CrowdStrike, as a recent buy. Terranova previously sold the stock on Dec. 5, then re-entered the trade after the company's fourth-quarter earnings and revenue topped Wall Street's estimates. "This is a company that clearly is well-positioned in cybersecurity," Terranova said. "This gives me a little bit more of the growth trade."