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.
Since the end of October, companies returning relatively large amounts of cash to shareholders through dividends and buybacks have seen their stocks outperform others.
ORCL and CRM are Synopsys's competitors in the Application Software industry that possess:
Oracle (ORCL) closed at $219.86 in the latest trading session, marking a -1.34% move from the prior day.
Analysts at Jefferies have highlighted Oracle Corp (NYSE:ORCL, XETRA:ORC)'s favorable risk/reward profile following a recent 32% decline in the company's shares from their September peak. The analysts have a ‘Buy' rating on Oracle and $400 price target, implying upside of 79% from Oracle's share price at their time of writing.