Get insights on stocks with Simply Wall St, a global community of 7 million individual investors. Oracle (ORCL) recently attracted attention due to its aggressive AI infrastructure expansion, primarily funded by new debt linked to its long-term cloud partnership with OpenAI. Despite a strong one-year total return of 19.87%, Oracle’s shares have faced a 31.06% drop in the last 90 days, suggesting a cooling momentum. With fresh cloud deals across retail, healthcare, and defence, tensions around debt levels at the current price of US$191.09 are rising. Analysts believe Oracle is undervalued compared to a fair value of US$389.81, driven by strategic investments that reposition it as a key player in AI. However, execution and market demand risks loom large. Investors should analyze Oracle’s growth potential against its P/E ratio of 35.6x compared to industry standards. Explore Simply Wall St for comprehensive analysis and stock insights today.
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Oracle (ORCL) Valuation Under Review Amid Debt-Fueled AI Initiatives and OpenAI Cloud Partnership Concerns
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