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Oracle cuts intrinsic value due to AI and regulatory risks despite strong cloud revenue growth.

Market News
09 Nov 2026, 17:24 WIB
Seeking Alpha
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Bearish
Oracle cuts intrinsic value due to AI and regulatory risks despite strong cloud revenue growth.

Oracle's cloud infrastructure revenue jumped 121% year-over-year, but rising capital expenditures and negative free cash flow have raised concerns about funding and leverage. The stock has dropped 54% from its high and currently trades below the analyst's $160 fair value estimate, with technical support near $110. Increased regulatory scrutiny on data centers and fading AI enthusiasm could further pressure Oracle's earnings and valuation multiples. Despite these challenges, Oracle remains a "Buy" recommendation, though with a sharply reduced intrinsic value target due to heightened AI and regulatory risks.

Oracle shares trade at USD 118.20 on Pluang as of Nov 09, 2026 22:42 WIB, showing a 1.85% gain in the past day. The stock remains far below its 52-week high of USD 248.07 but above its 52-week low of USD 114.99. Investors hold Oracle shares for an average of 76 days on the platform, with a dividend yield of 1.72%.

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