Quick Read – Oracle shares have crashed 61% from peak; at 16.2x forward P/E, bulls see the battered stock as ripe for a sharp V-shaped bounce. – Jefferies and Guggenheim both hold $400 price targets, implying 215% upside as Oracle’s AI supercluster pipeline and revenue backlog…
nversions accelerate. – OpenAI’s deteriorating finances and delayed IPO threaten Oracle’s largest AI revenue stream, adding uncertainty to an already heavily leveraged balance sheet. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn’t make the cut. Grab the names FREE today
It’s hard to believe, but shares of Oracle (NASDAQ:ORCL) have now lost more than 61% of their value from the peak hit last year when the firm pulled the curtain on a stunner of a quarterly earnings report. Since then, the company has only gotten even more aggressive with its push into the AI data center. And as shares look to implode to new multi-year depths, many investors might be wondering if the company has risked too much to get a better seat in this ongoing AI revolution.
The AI buildout continues to move at full steam, but Oracle has seemed to take it to the next level not only by cutting its workforce, but by taking on significant sums of debt to build the AI compute needed to serve frontier AI innovators, including OpenAI, which has become the company’s sore spot in recent months amid growing concern about the financial situation over at the frontier AI lab. With OpenAI’s IPO delayed, Apple (NASDAQ:AAPL) takes OpenAI and Sam Altman to court over the alleged theft of secrets; it feels like being an OpenAI-adjacent company is the wrong place to be. Of course, a few stumbles and delays might give off the impression that OpenAI might not be up for the money.