Fears over Oracle's AI debt load and OpenAI concentration are overblown — and they mask a massive long-term opportunity, according to Guggenheim.
Oracle is rated a "Buy" after a 40% pullback, with the current valuation reflecting key risks. ORCL's $523 billion RPO is increasingly diversified, with new contracts from Meta and Nvidia reducing reliance on OpenAI. Near-term revenue acceleration is expected, with $4 billion additional revenue guided for FY '27 and FY '26 guidances reaffirmed at $67 billion.
Oracle's (NASDAQ: ORCL) first quarterly dividend payment of 2026 is coming this Friday, January 23.
AMZN's AWS is reaccelerating with 20% growth, a $200 billion backlog, and massive AI investments as it pulls ahead of ORCL in cloud scale.
ORCL's RPO surges to $523B, quadrupling YoY, giving multi-year revenue visibility as cloud and AI contracts drive growth beyond 2026.
Oracle was reportedly sued Wednesday (Jan. 14) by bondholders who allege that the company made false and misleading statements in the offering documents for an $18 billion debt sale. The proposed class action lawsuit includes investors who bought $18 billion of notes and bonds issued by Oracle on Sept.
Shares of Oracle (NYSE:ORCL) have been looking up in recent weeks, thanks in part to the TikTok deal as well as an exhaustion in pessimism surrounding Oracle, its debt load, and its OpenAI exposure.
Oracle was sued on Wednesday by bondholders who say they suffered losses because the company led by billionaire Larry Ellison failed to disclose it needed to sell significant additional debt to build out its artificial intelligence infrastructure.
I am reiterating a Buy rating on Oracle Corporation despite recent revenue misses and negative free cash flow driven by aggressive, debt-fueled capex. Oracle's $523B+ backlog, heavily reliant on OpenAI (60%), presents execution and timing risks, but Meta's Meta Compute is proof that the AI-arms race is not slowing down. This should help bolster investor confidence in ORCL's backlog that is being heavily discounted at the moment, along with potential cloud computing deals with Meta that may occur in 2026.
Oracle (ORCL) reached $202.29 at the closing of the latest trading day, reflecting a -1.17% change compared to its last close.
Recently, Zacks.com users have been paying close attention to Oracle (ORCL). This makes it worthwhile to examine what the stock has in store.
Oracle stock (NYSE: ORCL) has decreased by 11% over the past six months, whereas the broader S&P 500 index has increased by 11%. What contributes to this underperformance?