After recent volatile sessions, Oracle's (NYSE: ORCL) share price is surging as investors react to Wall Street's bullish outlook on the company's key partnership in artificial intelligence.
Oracle (ORCL) concluded the recent trading session at $196.99, signifying a -1.64% move from its prior day's close.
Just when you thought tech was about to rollover into a vicious bear market or the so-called “AI bubble” would burst in a way that would bring back memories of the dot-com bust at the turn of the millennium, markets turned sharply higher, with AI stocks leading the rebound.
Last month, when concerns about an AI bubble spilled over and sparked a sell-off, stocks spent several weeks in a pullback. However, the fallout adversely affected some equities more than others—even those that have no direct ties to the AI industry.
ORCL's NetSuite posts 16% growth to $1B in Q1 FY26, but a slower pace versus the infrastructure segment raises questions about accelerating revenue contribution.
Oracle (ORCL) shares have decreased by 29.3% over the past 21 trading days. This recent decline signals renewed worries regarding stagnant cloud profit margins and the risks associated with AI investments, but sharp declines like this often prompt a more challenging question: is the downturn a temporary setback, or does it indicate more significant issues within the company's narrative?
Oracle stock (NYSE: ORCL) has dropped approximately 30% in a month, wiping out billions in market capitalization and erasing substantial prior gains. This sharp decline aligns with past patterns, demonstrating that ORCL is susceptible to abrupt, steep corrections.
Shares of an off-price apparel retailer climbed after the company touted its success in the back-to-school season and issued a rosy outlook for the critical holiday quarter. Meanwhile, a database software firm remained under pressure as questions linger about its valuation and capacity to meet lofty targets.
Betting big on artificial intelligence is proving to be a double-edged sword.
Oracle Corporation remains a buy despite a 40% drawdown, with ORCL shares now offering a favorable risk/reward profile. ORCL's rapid cloud and AI growth, strong customer base, and ambitious long-term revenue and EPS targets support the bullish thesis. Key risks include a high debt-to-equity ratio, negative free cash flow, and execution uncertainty on AI capex and data center rollouts.
Shares have lost gains from a September AI-fueled pop, and the company's debt load is growing.
Recently, Zacks.com users have been paying close attention to Oracle (ORCL). This makes it worthwhile to examine what the stock has in store.