"Oracle's stock has fallen nearly 50 percent since hitting a record in September and dropped 14 percent in the six sessions through Thursday, its worst stretch in months. Of the 51 Wall Street analysts tracked by Bloomberg who follow the company, 41 have buy ratings and only one rates it a sell."
"The consensus price target implies a 43 percent rise over the next twelve months, one of the highest projected upsides among Oracle's large-cap peers. One portfolio manager described the stock as offering 'an incredibly attractive entry point' with a price target double the current share price."
"Oracle's growth thesis rests substantially on a $300 billion, five-year partnership with OpenAI to supply cloud computing infrastructure for Stargate, the AI infrastructure joint venture between OpenAI, SoftBank, and Oracle announced in January 2025."
"The $300 billion figure made Oracle's stock when it was announced. It is now the reason the stock is falling. The question investors are asking is about the implications of this deal."
Oracle's stock has decreased nearly 50% since its September peak, despite 41 of 51 Wall Street analysts rating it a buy. The consensus price target suggests a 43% upside. Concerns arise from a $300 billion partnership with OpenAI for cloud infrastructure, where investors fear circular financing risks. Analysts remain optimistic about Oracle's undervaluation and strong financial performance, including a 95% increase in net income. The divergence between analyst ratings and investor sentiment centers on the implications of the Stargate deal.
Read at TNW | Finance
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