Jim Cramer delivered a blunt message to investors during the member Q&A on Friday, July 17th's episode of CNBC Mad Money Investing Club.
Oracle Corporation faces heightened risks as its AI infrastructure buildout is heavily tied to OpenAI's success, now lagging Anthropic in model leadership and IPO momentum. ORCL's aggressive AI CapEx has significantly pressured free cash flow margins, increased debt, and triggered a credit downgrade to BBB-. Despite steep execution risks and market fear, ORCL trades at 15.4x forward earnings, well below its five-year average, suggesting the sell-off may be overdone.
Oracle (NYSE:ORCL | ORCL Price Prediction) trades at $124.21 against a consensus Wall Street price target of $251.85, a gap of roughly 103%.
Oracle (ORCL) closed the most recent trading day at $124.27, moving 6.2% from the previous trading session.
Shares of Oracle (NYSE:ORCL | ORCL Price Prediction) are down another 4% today to $127 in midday trading, extending a brutal stretch that has seen Oracle stock fall 33% over the past month.
Oracle's ORCL database business notched its strongest growth signal yet in the fourth quarter of fiscal 2026, with the Oracle Multicloud AI Database expanding 404% year over year, a pace the company itself flagged as its fastest-growing business ever. The momentum builds on a series of product moves through mid-2026, including the rollout of Oracle AI Database 26ai, which embeds agentic AI capabilities, vector search and select AI tools directly into the database layer, along with agentic AI innovations for enterprise data unveiled in March 2026 and continued multicloud expansion across AWS, Google Cloud and Azure infrastructure.
Oracle has declined over 30% YTD, underperforming peers amid market rotation and debt concerns. I maintain a buy rating, emphasizing Oracle's attractive valuation and resilient core software business despite infrastructure capex risks. Oracle's cloud applications segment grew 10% y/y in Q4, matching growth rates of mature SaaS peers.
Oracle (ORCL) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
It's hard to believe, but shares of Oracle (NASDAQ:ORCL | ORCL Price Prediction) have now lost more than 61% of their value from the peak hit last year when the firm pulled the curtain on a stunner of a quarterly earnings report.
Oracle is transforming from a legacy software company into a deep value hyperscaler, powering AI growth with robust cloud infrastructure expansion. Despite execution risks, high debt, and customer concentration—especially with OpenAI—ORCL's accelerating cloud revenues and large backlog support a "Strong Buy" rating. Management guides for 34% YoY revenue growth to $90 billion, with high GPU utilization and expectations of high-20s ROIC at steady state.
Oracle stock continued its strong freefall this week, reaching its lowest level since April last year. ORCL has slumped by over 62% from its all-time high, with Larry Ellison's net worth plunging by $60 billion this year to $187 billion.
Larry Ellison has had a bad year. The founder of Oracle (NASDAQ: ORCL | ORCL Price Prediction) has lost $60 billion in net worth this year, which has dropped his total to $187 billion, still a lot of money.