Oracle Q2 Earnings: Don't Catch The Falling Knife
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Envision ResearchInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummaryOracle Corporation faces continued downside risk despite a sharp post-earnings price correction.ORCL's recent expansion is increasingly debt-fueled, with long-term debt nearing $100B and lease commitments tripling to over $20B in three years.The company has halted share buybacks and become a net issuer of equity, signaling capital allocation strain and shareholder dilution.ORCL stock valuation is still elevated versus historical and sector norms, especially measured in debt-adjusted metrics. OlekStock/iStock via Getty Images ORCL Stock: Fiscal Q2 earnings recap I last analyzed Oracle Corporation (ORCL) on 9.11 in an article titled “Oracle Q1: Control Your FOMO,” with other envelope information detailed in the following screenshot. That article was triggered byThis article was written byEnvision Research19.13K FollowersFollowEnvision Research, aka Lucas Ma, has over 20+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.He leads the investing group Envision Early Retirement along with Sensor Unlimited where they offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request.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.