5 Stocks that Will Bounce Back According to Reddit

4. Oracle Corporation (NASDAQ:ORCL)

Number of Hedge Fund Holders: 84

Oracle Corporation (NASDAQ:ORCL) shares recently saw record lows after the company posted fiscal Q1’2024 results. Revenue and guidance were weak, pointing to a slowdown in Cloud growth. Analysts also believe investors had high expectations regarding Oracle Corporation (NASDAQ:ORCL)’s AI offerings. However, Redditors believe the sell-off is overdone and the reason why the stock fell was mostly because Oracle Corporation (NASDAQ:ORCL)’s management did not use the buzzword “AI” enough during its quarterly results presentation and call.

Reddit believes Oracle Corporation (NASDAQ:ORCL) will bounce back. Here is an interesting comment from a Redditor on Oracle selloff:

“People didn’t like the revenue guidance even though it was due to shifting their Cerner customers from licenses (booked up front) to subscriptions (booked over the life of deal). The stock will be fine long term. ORCL is a very unique set of assets (Cerner, cloud, modern AI infrastructure) and while the stock may not rebound immediately the company is in better shape than their former days of relying on ‘on prem database applications’.”

ClearBridge Large Cap Value Strategy made the following comment about Oracle Corporation (NYSE:ORCL) in its Q2 2023 investor letter:

“The Strategy outperformed in the quarter, benefiting from recent opportunistic additions such as Meta Platforms as well as medium and long-term holdings such as Vertiv, Oracle Corporation (NYSE:ORCL) and Martin Marietta Materials.

Expectations that rapidly developing generative AI technology will drive another wave of cloud adoption were also a boon for Oracle, the dominant provider of on-premise database software for large enterprises globally, with growing cloud and SaaS businesses. Oracle noted that generative AI cloud customers have already signed contracts to purchase more than $2 billion of cloud capacity, reflecting the strengths of its technology as well as its aggressive go-to-market strategy.”