📉 Why is Oracle $ORCL falling so hard?

· Sep 25

📉 Why is Oracle $ORCL falling so hard? Opportunity or trap? 🤔

Oracle is being pushed down mainly by huge investments in AI infrastructure. Capex is extreme and investors have strong doubts about the company. Investors are also concerned about debt and, above all, when all these investments will start paying off in the form of real cash flow.

🚀 On the other hand, demand for AI and cloud is definitely not lacking – Oracle has a huge backlog and cloud is growing very fast.

🙋‍♂️ I've written about the whole topic on my profile:

Is Oracle already too risky for investors because of its huge investments in AI infrastructure?

Is it a good buying opportunity or a trap?🤔

And what am I doing – am I buying the stock or staying on the sidelines?🤔

What do you think about Oracle, or are you staying away?

A community member's personal view, not investment advice. Community Guidelines

Tomáš Král @tonn_06 Sep 28

ORCL is now in a fairly difficult situation. It has signed contracts with customers for cloud, but the completion of the Jupiter project in New Mexico, on which it spent and borrowed a lot of money, is being delayed = return on investment is being pushed back in time and we will see if it doesn't bring further problems in an environment of high yields and more expensive financing. This could send ORCL even lower before the project is completed.

Kryštof Jáně @krystofjane Sep 26

For now I'm just watching the company. I'd like to see an even greater return on those investments. At the same time, it's still quite risky. So for now $ORCL only has a place on my watchlist.

StockPickers DUO @stockpickers_duo Sep 25

No CAPEX worth roughly 1/4 of the market cap is a massacre, especially when AWS, Microsoft Azure, and Google Cloud are also pushing into cloud at the same time. And Meta could potentially join them over time. I'm staying away from it for now.

What about you?

Petr Schneider @petrschneider Sep 26

The risk is truly enormous, but at the same time we both have to say that the backlog is incredible.

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