The Oracle Stock Meltdown Is A Massive Overreaction

Bay Area Ideas4.4K FollowersFollow5ShareSavePlay(11min)CommentsSummaryOracle Corporation is reiterated as a buy after another 30% pullback, citing robust AI-driven growth and multiyear low valuation.Q3 revenues grew 22% YoY, led by an 84% surge in Cloud Infrastructure, with RPOs up $29 billion sequentially, signaling strong demand.Financial leverage remains aggressive, with a debt/equity ratio of 5.3, but liquidity is solid, and no further bond issuance is expected in CY2026.Geopolitical risks in the Middle East and the decision to not expand the Texas site are noted, yet FY2027 revenue guidance was raised, reinforcing a bullish long-term thesis for ORCL stock. JasonDoiy/iStock Unreleased via Getty Images After a massive selloff, I upgraded Oracle Corporation (ORCL) from a Hold to a Buy back in January. The market's fear seemed excessive as the company demonstrated strong growth momentum and robust demandThis article was written byBay Area Ideas4.4K FollowersFollowI'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honor Society. My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of my ability, hold true to these values which I believe are key for long-term success. I would like to invite all of my readers to leave their constructive criticism and feedback in the comments section so that I can further enhance the quality of my work moving forward. Thank you and God Bless America!Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.