"The bearish tilt in options discussions reflects real concerns that go beyond typical market gyrations: Oracle trades at a close to a 60 P/E ratio, leaving very little breathing room for any other than spectacular growth Quarterly earnings growth turned negative at -1.9% YoY, a jarring reversal among concerns about margin pressure The company faces intensifying competition in AI infrastructure from all comers. Everyone from Google (Nasdaq: GOOG) to OpenAI is building out their own massive infrastructure."
"Today, nearly all Oracle discussion is concentrated in options-focused trades rather than direct ownership. Usually this means traders are looking at Oracle as a short term speculative trade, not a long term investment. Conviction is wavering. Technical Pressure Meets Analyst Optimism The stock now trades below its 50-day moving average of $278.52 and the RSI has plummeted to 35.20, approaching oversold territory. Over the past week alone, Oracle has given back nearly 29% of its value off its 52-week high of $345.12."
Oracle shares fell 11% to $245.01 after options traders on social platforms shifted sentiment toward bearish positions. Reddit r/options sentiment scores dropped from 61 to 41, with threads receiving over 100 upvotes and sustained comment activity. Concerns cited include a near-60 P/E ratio, a -1.9% year-over-year decline in quarterly earnings growth, and intensifying AI infrastructure competition from Google and OpenAI. Most discussion centers on options trades rather than direct ownership, indicating short-term speculation. The stock trades below its 50-day moving average of $278.52, the RSI sits at 35.20, and the price is about 29% below its 52-week high of $345.12. Analysts forecast ambitious 2028 revenue.
Read at 24/7 Wall St.
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