Oracle shares fell 8.8% on Wednesday, dropping as low as $129.23 and last trading at $130.60 on volume 71% above average. Bullish views were supported by reported remaining performance obligations of $664 billion and a Mizuho Outperform rating with a $320 price target. Concerns centered on heavy AI infrastructure spending pushing free cash flow negative, along with rising interest rates and financing costs. The stock also slid alongside CoreWeave and other AI-related names after hotter inflation lifted Treasury yields and renewed worries about AI debt and data-center financing. In its latest quarter, Oracle reported EPS of $1.92, above the $1.74 consensus, and revenue of $19.34 billion, up 29.6% year over year.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Oracle ( NYSE : ORCL ) Shares Down 8 . 8 % – Should You Sell ?
Read the original on themarketsdaily.com ↗
Related news
- Oracle (ORCL) Has Fallen 54% and 80% of Analysts Still Say Buy. Why?
Oracle shares have fallen 53.84% over the past year, yet 80% of covering analysts still rate the stock a buy, with a median target 78.48% above the current price, according to CNN. The article notes revenue grew almost a third in the latest quarter and earnings grew faster, though that does not explain the drop. Analysts are weighing contracts to supply computing capacity worth $638 billion, far above annual revenue, while the market is focused on cash flow: capital spending of $75.66 billion over the past year exceeded $46.94 billion of operating cash, a gap funded by borrowing. The article frames the core question as whether returns on this spending arrive before the debt becomes a problem. The shares trade at 17.76 times expected next-year earnings.
- Open Cloud Security And Testing Partnerships Could Be A Game Changer For Oracle (ORCL)
Marvell Technology, Microsoft and Oracle have formed a security working group under the Open Compute Project to define open NIST FIPS 140-3 Level 3 integrated HSM specifications for cloud and hyperscale data centers. Separately, UiPath Test Cloud is now available on Oracle Marketplace for AI-powered testing of Oracle applications. The article argues these moves do not materially change Oracle's near-term need to convert its AI backlog into revenue, given negative free cash flow and planned FY27 CapEx of about US$70b. The article's investment narrative projects $193.6 billion in revenue and $47.2 billion in earnings by 2029, which would require 39.2% yearly revenue growth.
- Should You Buy, Sell, or Hold META Stock Before Q3 Earnings Release?
Meta Platforms (META) reports third-quarter 2026 results on Oct. 21, with revenue guidance of $61 billion to $64 billion. The Zacks consensus is $63.24 billion in revenue, up 23.42% year over year, and $6.54 per share in earnings, down 9.79% from the year-ago quarter. Meta beat the consensus in three of the last four quarters, with an average surprise of 3.46%. Advertising driven by AI is expected to support revenue, with Advantage+ passing a $75 billion annual revenue run rate, while rising AI infrastructure and depreciation costs could weigh on margins. META shares are up 7.5% year to date, trailing the sector's 15.8% gain, and trade at 6.1X forward 12-month price/sales.
- A Micron Union in Taiwan Voted 99% to Authorize a Strike. Should You Sell the Stock?
Members of Micron's Taoyuan union in Taiwan voted 99% in favour of authorising a strike over how the company splits profits, though no date has been set. The union wants 15% of operating profit paid to workers through a permanent system, and mediation failed in September, prompting Taiwan's labour ministry and President Lai Ching-te to urge both sides to negotiate. Taiwan is arguably Micron's most important country, with most of its fiscal 2026 DRAM output made there, but the vote so far covers only the smaller Taoyuan site, while the Taichung union, representing around 10,000 workers in Taichung and Tainan, holds a second mediation session on Oct. 22. Micron says it has already sold out all the 2027 capacity of the Taichung factory, so a long strike could leave it short on contractual deliveries. The shares trade near $879, about 28% below their late-June record close of $1,213.56, and the author still expects a deal and does not see the vote as a reason to sell.
- Should You Sell BND Now , or Is It the Best Bond Buy in 3 Years ?
BND, Vanguard's total bond market ETF, now has a 5.6% yield to maturity after the 10-year Treasury yield climbed to its highest level since 2007, although the fund is still down 1% this year. The article explains that rising yields lowered the prices of existing bonds but also let reinvested income earn more, following the Fed's 0.25-point hike in September to a 3.75% to 4.00% range. Over five years, $100,000 in BND shrank to about $98,220, while the same amount grew to about $120,580 in SGOV and $124,390 in FLOT. Still, investors who bought BND in October 2023 are up 17%, ahead of SGOV's 14%. The article suggests BND suits money with three or more years to invest, while money needed within one to two years fits better with SGOV, FLOT or VGSH.
- Should You Buy, Sell or Hold MELI Stock at a P/S Valuation of 1.83X?
MercadoLibre (MELI) trades at a forward 12-month P/S of 1.83, slightly above the industry average of 1.81 but below its one-year median of 2.14, with Amazon at 2.97 and Sea Limited at 1.58. Second-quarter 2026 net revenues and financial income rose 50% year over year to $10.2 billion, driven by Commerce, Mercado Pago and advertising, but operating margin fell 550 basis points to 6.7% as spending on free shipping, logistics and customer acquisition weighed. The stock fell 8.3% over the past year, lagging the Zacks Retail – Wholesale sector's 0.4% gain and the S&P 500's 16.8% rise, and trailing Amazon's 19.4% gain while beating Sea Limited's 39.1% decline. The current fiscal-year EPS consensus was cut from $38.29 to $38.13 over seven days (down 3.2% year over year), while the next fiscal-year consensus rose from $55.03 to $55.23.
Related markets
Latest news
- Why Meta's Q3 earnings could be a little hard to interpret
Meta is reporting its third-quarter earnings after the market closes Wednesday, and Yahoo Finance's Brian Sozzi says the report will be hard to interpret. Recent good news on Meta's AI products, including new models and an AI agent, may not appear directly in the results but will likely be discussed on the earnings call. The key uncertainty is how investors will react if Meta raises its capex outlook again: it could be seen as fueling those products, or as overspending on offerings not yet reflected in financials. Sozzi expects the market to give Meta the benefit of the doubt on higher capex, as long as the increase does not shock investors.
- Zerohash rolls out a new tool to move crypto without copying wallet addresses
Zerohash launched AUTH, a service that lets users move crypto, stablecoins and blockchain-based stock tokens between linked exchange accounts or self-custody wallets without copying wallet addresses or choosing a blockchain network. To transfer, users pick an account in an app that offers AUTH, sign in and approve the move, while the service handles routing and settlement and each app sets which assets and transfer types it allows. AUTH supports more than 600 connections, including Coinbase, Robinhood, Gemini, MetaMask and Phantom, with Coinbase, Robinhood and Gemini live and Kraken in beta. The launch comes as Zerohash's application for a national trust bank charter, returned by the Office of the Comptroller of the Currency in July, remains pending after a narrower refiling on Aug. 18.
- 2 charts show why Wall Street is right to worry about tech stocks
Rising cost of capital could affect the financial statements of hyperscalers such as Oracle (ORCL) and Google (GOOG, GOOGL) in 2027, as they need fresh debt to fund AI infrastructure and free cash flow may turn negative. JPMorgan strategist Mislav Matejka forecasts hyperscaler free cash flow will turn negative in 2027, implying credit markets will drive more of the AI build-out. Consensus estimates for 2027 capital expenditures are already rising from levels experts believe are too low. Morgan Stanley sees total 2027 capex among hyperscalers reaching $1.6 trillion, up from $978 billion estimated for this year. Dan Ives of Yorkville expects capex to reach the trillions and over 1,000 datacenters to be built in the next few years.
- Update on loan rate cuts as of the evening of Oct 19: MB, VietinBank, SHB, OCB join in
SHB, MB, VietinBank and OCB have announced loan rate cuts, following Agribank, Vietcombank, BIDV, ACB, LPBank and VietBank, with typical reductions of 1.5-2% per year. MB is cutting 1.5% per year for five priority sectors, to rates from 7.9% per year, and up to 2% in some cases; VietinBank is cutting up to 2% per year, while OCB offers up to 2.25% per year on some medium- and long-term loans for OCB Priority Banking members. SHB is cutting 1.5-2% per year for businesses and households and offers rates from 5.5% per year for lecturers and students at some universities. Vietcombank commits to cutting at least 2% through year-end, BIDV applies rates from 6% per year on short-term VND loans from 15/10/2026, and VietBank runs a VND 3,000 billion package. Specific benefits depend on borrower type, loan purpose, term and program conditions, following directives from the Government and the State Bank of Vietnam.
- Nvidia wins CPU business from Modal, previously exclusive to AMD and Intel
Modal, a San Francisco-based AI cloud startup that previously ran its AI agent workloads only on Intel and AMD processors, will begin using Nvidia's new Vera CPU. Early tests showed the Nvidia chip doubled work capacity for AI agents, and Modal plans to run it alongside Intel and AMD chips, assigning each task to the most efficient hardware, though integration requires substantial software changes. Modal recently raised $750 million in a round led by Accel at a $15.75 billion valuation and expects $1 billion in sales over the next year, with usage tripled and revenue up more than 15 times year-over-year. Nvidia projects at least $20 billion in Vera chip revenue this fiscal year in a market it estimates at about $200 billion, and says OpenAI, Anthropic, Oracle and Perplexity also plan to use the chips.
- America's EV Plans Have Died
Billions of dollars went into EV factories, dealerships and marketing after President Biden set a goal for 50% of new US car sales to be zero-emission by 2030, but EV sales have since fallen sharply. US EV sales dropped 30.7% in the first nine months of 2026, after the $7,500 tax credit expired on September 30 last year, and gas prices near $4.50 per gallon have done little to lift them. According to Kelley Blue Book, the average transaction price of a new EV was $54,754 in August, above the $50,089 average for all new cars. Ford's EV sales fell 80.2% to 6,047 in the third quarter, and it has no new EV planned until its Fathom launches next year, while Tesla holds over 50% of the market and no other major automaker has even 10%. The article says EVs could recover if gas prices reach $5 and stay there for months, but that is uncertain.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.