Oracle ends 9-day losing streak as 84% of analysts say buy

Oracle shares rose 2.49% to $143.76 on Monday, ending a nine-session losing streak that erased 24% of the stock's value.

"Oracle's selloff has created a compelling entry point given its AI infrastructure backlog and end-to-end technology stack," Siti Panigrahi, analyst at Mizuho Securities, said. Panigrahi has a $320 price target, the highest on Wall Street.

The nine-day decline was Oracle's longest since December 2021. From its June 1 closing high of $248.15, the stock fell in 18 of the next 22 trading sessions, losing 26.2%. Since reaching an all-time closing peak of $324.33 on Sept. 10, 2025, Oracle has dropped 56.2%. The selloff came as the iShares Expanded Tech-Software Sector ETF rallied more than 10% over five consecutive sessions through last Thursday, a divergence that points to company-specific pressure.

The divergence between Oracle's stock price and analyst sentiment is at a two-decade extreme. A full 84% of analysts tracked by FactSet rate Oracle a Buy — a level exceeded only once since 2005, briefly in May 2011. The consensus price target of $254.84 implies roughly 82% upside from last Thursday's close. KeyBanc maintained its Overweight rating with a $300 target, citing growing confidence that operating expense growth will remain disciplined. Evercore ISI kept its Outperform rating and $245 target, highlighting Oracle's $77 billion remaining performance obligation.

The primary concern driving the selloff is Oracle's capital expenditure requirements and rising debt levels as it builds out AI infrastructure. Piper Sandler, which maintained its Overweight rating and $225 target, said investors are worried about financing needs, customer concentration and margin pressure. The firm estimates Oracle could add roughly 2,400 megawatts of Oracle Cloud Infrastructure capacity in fiscal 2027, generating about $2.2 billion in revenue not reflected in current consensus forecasts.

Mizuho's Panigrahi acknowledged that Oracle will likely require external financing to support its capex plans, calling financing challenges a significant risk factor even as he named the stock a preferred pick. Freedom Broker cut its target to $210 from $230 while keeping a Buy rating, describing Oracle's shift toward AI compute infrastructure as a long-term positive.

Oracle's PEG ratio stands at 0.69, which Piper Sandler said suggests the stock is undervalued relative to its growth trajectory. Revenue over the trailing 12 months grew 17%.

The decline puts Oracle at its lowest since early 2023, testing support near its 52-week low. The next catalyst is Oracle's fiscal first-quarter earnings report, expected in September, when investors will scrutinize cloud revenue growth and capex guidance.

This article is for informational purposes only and does not constitute investment advice.