ORCL

Microsoft's earnings and a new partnership with Google drove Oracle's stock higher. Its stock still looks reasonably valued relative to its long-term growth potential.

Oracle Corp (NYSE:ORCL, XETRA:ORC)'s price target was cut to $245 from $285 by UBS, which maintained its 'Buy' rating on the stock while citing risks around rising AI infrastructure spending, returns on invested capital, credit markets and Oracle's exposure to OpenAI. The analysts wrote that Oracle shares have fallen 27% since the company's fiscal fourth-quarter results, with investors focusing on several perceived risks despite strong revenue growth and guidance.

Michael Burry said on his Substack that he's shorting Oracle and Nebius. The "Big Short" investor wrote that many AI companies are looking bloated and vulnerable.

As part of his ongoing strategy of betting against the artificial intelligence (AI)-involved technology sector, the legendary ‘Big Short' trader Michael Burry unveiled two new positions in an August 6 Substack post.

Michael Burry has exited his bullish Microsoft trade and closed his remaining bearish Oracle position, but one prominent artificial-intelligence wager is still alive: Palantir stock. That decision looks provocative after Palantir shares surged nearly 30% on Tuesday following another blowout quarter.

Fusion Cloud ERP and NetSuite Cloud ERP continue to drive ARPC growth, supported by new AI features and sustained market leadership in ERP. Oracle Cloud Infrastructure's market share is projected to rise through 2028, fueled by AI data center buildouts and expanding Oracle Database partnerships. Key risks include Oracle's lack of proprietary LLMs, but strong data center expansion and exclusive database partnerships underpin long-term upside.

Oracle Corp. (NYSE:ORCL) stock fell more than 3% in Thursday's premarket session as investors reassessed the software giant's aggressive AI spending strategy amid a mixed broader market. Nasdaq futures slipped 0.4%, while S&P 500 futures edged up 0.2%.

The office was home to members of the app's content moderation team.

Oracle's stock continues to underperform its peers due to AI-related concerns, and the deterioration caused to its balance sheet caused by its AI infrastructure buildout. Oracle recently secured a major Pentagon contract, and a constructive deal with Alphabet that helped strengthen the case for the stock.

Recent earnings reports alleviated investors' concerns about cloud demand and AI spending. Microsoft has the best free cash flow and operating margins of the cloud majors.