Oracle stock has crashed 50% since June

Price Action

โดย Yahoo Finance·Read original

Summary · why it matters

Oracle's stock price has fallen more than 50% since June 2, bringing its year-to-date decline to 36% versus a 9% gain for the S&P 500. The stock is now trading at its lowest forward price-to-earnings ratio in more than four years at 15.5 times, compared to about 20 times for the S&P 500. Investors are questioning whether Oracle's AI-fueled growth expectations have become too aggressive, amid concerns over heavy spending on data centers and intense competition from Microsoft Azure, Amazon Web Services, and Google Cloud. Despite the sell-off, about 86% of sell-side analysts covering Oracle maintain a Strong Buy or Buy rating on the stock. BD8 Capital Partners CEO Barbara Doran highlighted execution risk and noted that S&P recently downgraded Oracle to triple B minus, one notch above junk status.