Oracle is a "Decade Stock," Could More Than Double, Says Analyst

"Oracle ( NASDAQ:ORCL) has already been punished harshly by the market, thanks to its heavy debt load and OpenAI exposure. That said, the punishment just seems to keep coming for the fast mover in AI data centers. The stock shed another 2.2% on Thursday, sinking below the $170 per-share mark. Undoubtedly, the stock has already lost more than half of its value, but the same fears that have weighed down the stock for the past couple of months have continued to drive shares lower."

"Of course, it's tough to buy the dip and hold onto a contrarian view whenever there's negative momentum like this. And while some analysts have turned against the stock, with price target downgrades well after the fact, there are some Wall Street pros who are standing by their hefty price targets. Undoubtedly, it's tempting to chase a stock just because of its implied upside. However, investors must realize that with great reward comes much risk."

"Before we get into the bull case, let's check out Morgan Stanley 's price target cut on Oracle. The analyst behind the cut, Keith Weiss, is a well-respected analyst, but his cut seems rather untimely, in my humble opinion, especially since the stock has already been crushed. Cutting the price target by more than $100 per share is going to cause investors to take notice."

Oracle has been punished by the market for its heavy debt load and OpenAI exposure, with shares falling below $170 and losing more than half of their value. Persistent fears about debt and AI-related costs continue to pressure the stock. Several analysts have cut price targets, including a more than $100 reduction from Morgan Stanley's Keith Weiss, while other Wall Street professionals still support high targets. AI data centers require significant capital, raising concerns about the company's investment-grade credit rating. Some investors warn of high volatility and unfavorable risk/reward, while bullish views contend growth is misunderstood and risks may already be priced in.

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