Oracle (ORCL) is Down 30% This Year. But This Billionaire Still Loves It

We just covered Billionaire Ken Fisher’s Latest Portfolio: 10 Best AI Stocks to Buy. Oracle (NYSE:ORCL) ranks #10 (see the 5 Best AI Stocks to Buy).

Billionaire Ken Fisher’s Stake: $1.81 billion

Oracle (NYSE:ORCL) shares are down about 30% so far this year, but some analysts believe the stock can rebound and reward patient investors. The company has a record $553 billion backlog in Remaining Performance Obligations, mostly from multi-year cloud infrastructure contracts (OCI), ERP, CRM, and Cerner healthcare software, giving earnings visibility for the next 18 months.

Oracle (NYSE:ORCL) has successfully transitioned from legacy software to a modern AI cloud leader, with OCI growing 44–84%, high client retention of 96%, and multi-cloud partnerships with Microsoft Azure and AWS helping capture enterprise customers.

Oracle’s (NYSE:ORCL) cloud services revenue now accounts for over half of total sales, and operational efficiency is high, generating $445,000 per employee, 15% above the industry average. Pricing power remains strong, with service fee hikes offsetting AI hardware costs, keeping non-GAAP operating margins at 43%.

Despite the negative sentiment around ORCL, there is one notable Wall Street analyst who thinks the stock can surge to $240. Read about his reasoning here.

Ariel Focus Fund said in its investor letter that while ORCL remains range-bound in the near term, its current infrastructure investments will pave the way for meaningful earnings growth over time. (Click here to read the full text).

Pixabay/Public Domain

While we acknowledge the risk and potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ORCL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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