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Oracle stock dips 41% YTD but shows strong revenue and cloud growth, rated strong buy for potential turnaround.

Analyst Insights
28 Jul 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Oracle's stock has fallen about 41% year-to-date, trading at a discount due to heavy AI-related spending, negative free cash flow, and a BBB- credit rating. Despite this, Oracle reported a 21% year-over-year revenue increase in Q4, with cloud infrastructure revenue surging 93% and operating income rising 54% to $32 billion. The stock's valuation metrics, including a price-to-cash flow just over 10 and a PEG ratio near 0.5, make it attractive compared to other AI peers. The analyst rates Oracle as a strong buy, expecting improved investor sentiment as credit stabilizes, free cash flow turns positive, and funding shifts from debt to equity.

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