$Oracle(ORCL)$ This selloff has likely priced in most of the AI bubble and debt concerns. I think the downside is limited now, and I'm still confident ORCL can finish above $250 this year.
Before the AI boom started to take off in 2024, Oracle was trading around $125–130. The recent price action has essentially reset the stock to its mid-2024 levels, as if none of the subsequent developments occurred.
Revenue has nearly doubled.
Cloud revenue has seen strong growth for multiple quarters.
AI demand has exploded.
There's a $638B backlog from AI customers, including OpenAI.
Some AI infrastructure is already built and ready to convert into revenue.
The market seems to be pricing Oracle as if none of this exists, which is why it looks extremely undervalued from my perspective.
It's worth noting this stock can be just as volatile on the upside. It jumped $60 in just three trading days back at the end of May, moving from $190 to $250. Markets are often driven by sentiment.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
