Analyst Identifies ‘Rich Uncle’ Dilemma for Oracle as ORCL Stock Declines Over 9% in Six Months: Future Prospects Depend on OpenAI’s Financial Viability

Oracle Corp. (NYSE: ORCL) is facing its most challenging financial quarter since 2001, with shares plunging over 30% in three months, as Jefferies analyst Brent Thill links Oracle’s future to the financial stability of its partner, OpenAI. Thill noted a significant market shift from “AI hype” to “AI show me,” pressuring companies to deliver tangible revenues amid soaring capital expenditures. As of December 26, Oracle’s stock dropped 31.37%, now valued at $197.99, reflecting broader concerns over hyperscale debt sustainability for AI ventures. This volatility stems from the uncertainty surrounding OpenAI, a private company whose financials remain opaque to investors. However, Thill remains optimistic, suggesting that significant enterprise adoption in 2026-2027 could validate Oracle’s heavy investments. Despite recent declines, Oracle’s shares have risen year-to-date by 18.81%, outpacing the S&P 500, yet the stock remains weak in short- and medium-term performance. For more information, check ORCL’s stock price.

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