Jim Cramer Discusses Oracle (ORCL)’s Shares

We recently published 13 Stocks That Crossed Jim Cramer’s Radar. Oracle Corporation (NYSE:ORCL) is one of the stocks Jim Cramer discussed.

Oracle Corporation (NYSE:ORCL) has continuously remained on Jim Cramer’s watchful radar over the past couple of months. From commenting that “the fundamentals are terrific, and as long as they stay terrific, well, the younger people would keep buying the stock,” in June, Cramer has now started to wonder about the firm’s relationship to OpenAI. At the root of the CNBC TV host’s concerns is Oracle Corporation (NYSE:ORCL)’s remaining performance obligations (RPOs). Cramer commented in late September that he thought “the story about Oracle say having 450 billion dollars of orders is a little softer than I think it sounded.” In this appearance, he once again pointed to the firm’s relationship with OpenAI after co-host Carl Quintanilla pointed out that the turmoil in stocks appeared to have started after November 3rd, when Sam Altman made his widely reported remarks related to short selling on hedge fund boss Brad Gerstner’s podcast:

“And that’s when Oracle started to go down and David started talking about the credit default swaps.”

Photo by Rodeo Project Management Software on Unsplash

Cramer also discussed the firm after running a clip of management discussing their relationship with OpenAI and commenting that Oracle Corporation (NYSE:ORCL)’s infrastructure investments could be used by different customers for many years:

“But the stock is saying that it was ill-advised, it’s up from, went to 218 what to 300 in change and then it’s come all the way back down.

“And then I question the RPO number because it should be money in the bank. But a lot of it was OpenAI, more than 300 billion and that made me concerned.”

While we acknowledge the potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.