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Oracle stock jumps 75% since February but rated Hold due to high valuation and execution risks.

Analyst Insights
02 Jun 2026
Seeking Alpha
View Source
Neutral
pluang ai news

Oracle Corporation's stock has surged over 75% since February, driven by a $553 billion AI-driven backlog and strong 84% growth in Oracle Cloud Infrastructure. Despite this impressive growth, the stock is now considered overvalued, trading at peak multiples with a forward P/E 23% above the sector average and price-to-sales 180% higher. The analyst rates Oracle as a Hold due to risks from heavy capital expenditures and negative free cash flow impacting the balance sheet. A 15% trailing stop is recommended to protect gains amid these concerns.

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