$494 billion. That's how much Oracle's market valuation has fallen since peaking at $877.1 billion in September, falling to about $383 billion as of Monday.
Shares of Oracle (NYSE:ORCL | ORCL Price Prediction) are trading at $132.27 in Monday afternoon action, down 6% on the day and touching a fresh 52-week low below the $134.10 prior floor.
ORCL's record AI backlog, stronger fiscal 2027 outlook and expanding cloud businesses offer reasons to hold despite a 29.5% YTD stock decline.
Oracle (ORCL) reported earnings 30 days ago. What's next for the stock?
Oracle (ORCL) shares have faced a challenging year, declining by -36.9% while the broader market has risen. The cause of this negative sentiment is clear: a substantial investment strategy aimed at expanding its cloud infrastructure.
On CNBC's Squawk on the Street, Jim Cramer made a call that resonated across chip and cloud names: the tech tape is bouncing.
Oracle Corporation (ORCL) delivered record Q4 and fiscal 2026 results, with 21% YoY revenue growth and 54% higher cash from operations, yet shares plunged sharply. ORCL's AI-driven CapEx is converting into strong cash flow, with $638B in RPO—12% set to convert within 12 months and another 34% over the next 36 months. Management guides for 27–29% Q1 revenue growth, 58–64% cloud growth, and EPS of $1.72–$1.76, with a $90B full-year revenue target and accelerating earnings.
Oracle has the kind of AI backlog most software companies would envy, but Wall Street is no longer rewarding backlog alone. ORCL is under pressure as investors are also focusing on customer concentration, required capital spending and the timeline for converting Oracle's backlog into cash flow.
Oracle is rated a Strong Buy as the market undervalues its robust revenue visibility and accelerating cloud infrastructure growth. ORCL's $638 billion in remaining performance obligations and 31% revenue CAGR guidance through 2030 underpin exceptional medium-term upside. The company's AI-focused OCI Supercluster and partnership with Nvidia position ORCL as a leading provider for inference workloads, justifying premium pricing.
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Oracle Corp. (ORCL) shares gained 1.3% on Monday as investors returned to the stock following a sharp, debt-driven sell-off, amid improving broader market sentiment. The recovery also came as broader market sentiment improved, with the Nasdaq Composite gaining 0.95% and the S&P 500 advancing 0.44%.
Oracle is reiterated as a buy, with robust AI-driven growth, strong demand, and a multiyear low valuation supporting the thesis. Cloud Infrastructure growth accelerated to 93% YoY, offsetting a slowdown in Cloud Applications and demonstrating continued strong demand and justified CapEx. FY2027 guidance calls for $90 billion in revenue (+34% YoY) and $8.05 non-GAAP EPS (+18%), with temporary gross margin pressure from data center ramp-up.