Quick overview

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Oracle Corporation (NYSE: ORCL) has been under downward pressure as of November 5, 2025; it closed at $258, down from a peak of $327.76 on September 10. Although there hasn’t been a single “plunge” in the last week, the stock has dropped by almost 21% from that peak, eroding its nearly 50% year-to-date gains.

This decline is consistent with broader market worries about high AI-related stock valuations, such as Oracle’s forward P/E ratio surpassing 33.  Ambitious long-term goals were highlighted at the event, such as $166 billion in revenue from cloud infrastructure and $20 billion in AI revenue by fiscal 2030 (up from $3 billion in 2026). Following a multi-month rally, a “sell the news” response emerged as skeptics questioned the viability. Late October Volatility:

Oracle’s fundamentals remain strong despite the declines, as evidenced by the company’s recent 52% growth in cloud infrastructure and large contracts (e.g., $455 billion in cloud RPO, mostly from OpenAI). The decline, which is currently trading at 13.9 times projected 2030 earnings, is seen by some as a buying opportunity.

An average price of $253 is predicted for November 2025, with a possible low of $212 if the excitement surrounding AI subsides. On cash flow metrics, contrarian investors draw attention to undervaluation (. P/FCF at 15.44x, lower than past averages). Broader Market Context (November 4): As investors re-evaluated their high expectations for profit growth to support premiums, stocks generally fell, with AI names like Oracle down nearly 4%.

Oracle has benefited greatly from the surge in AI infrastructure. It recently announced a five-year deal worth more than $300 billion with OpenAI to provide access to AI chips. Following the company’s September earnings report, which showed that it had $455 billion in remaining performance obligations—a 359 percent increase from the previous year—the stock experienced its best day since 1992. Oracle confirmed that it had a cloud agreement with Meta and reported that it committed $65 billion in cloud infrastructure during the current quarter.

Furthermore, Oracle reported that its adjusted gross margins on AI infrastructure would be between thirty and forty percent, exceeding the projections of some analysts.