Oracle Stock Slides 5% After Q4 Rally—Is the Dip a Buying Opportunity?

Quick overview

Oracle Corporation (NASDAQ: ORCL) delivered standout Q4 results last week, reviving investor optimism about its long-term growth—despite this week’s pullback.

Blowout Q4 Results Spark a Record High

Oracle stunned the market with its fiscal fourth-quarter earnings, delivering robust numbers that reignited investor confidence. The company reported revenue of $15.90 billion, an 11% year-over-year increase, and adjusted earnings of $1.70 per share—both of which beat consensus expectations from Visible Alpha analysts.

This performance propelled Oracle’s stock to a new all-time high of $216.69, a 25% gain from the previous week’s close of $215.36. The rally confirmed growing market belief in Oracle’s long-term strategy and its transformation into a formidable player in the cloud infrastructure space.

Stock Pulls Back Despite Strong Fundamentals

Following its Q4 earnings euphoria, Oracle’s share price has experienced a short-term correction. The stock closed this week at $205.12 after shedding $10.20 or 5% lower, and has continued to slide slightly in after-hours trading—though it remains firmly above $200. Despite the dip, analysts remain bullish, viewing this as a healthy pullback within a longer-term uptrend.

Oracle Stock Chart Daily – The 2024 High Below $200 Should Provide Support

With demand for data center infrastructure far outpacing supply, Oracle’s strategic positioning is compelling. The company plans to spend over $25 billion in fiscal 2026 to expand its cloud infrastructure capacity, which has become central to its growth strategy.

Long-Term Outlook: $1 Trillion Market Cap in Sight?

Many analysts now see Oracle as a serious contender for the $1 trillion valuation club, joining the ranks of tech giants like Microsoft, Apple, and Nvidia. That sentiment is driven by Oracle’s unmatched strength in data-intensive enterprise workloads and the rising demand for AI and cloud computing platforms.

CEO Safra Catz emphasized that fiscal 2025 laid a solid foundation—but the real acceleration lies ahead. “Fiscal 2026 will be even better,” she stated, pointing to expectations of significantly faster cloud growth and new enterprise demand.

While Oracle’s cloud infrastructure division slightly underperformed forecasts in Q4, the company expects over 70% growth in that segment by FY 2026, underscoring a confident roadmap despite competitive pressures from Amazon Web Services and Microsoft Azure.

Conclusion: Oracle’s recent share price retreat doesn’t erase the massive progress it’s made—both in market perception and operational execution. The short-term volatility may present a buying opportunity for long-term investors bullish on thech-driven enterprise solutions and hyperscale cloud services. With aggressive infrastructure expansion plans, strong leadership, and consistent earnings beats, Oracle seems well-positioned to continue its ascent—and possibly reach the $1 trillion valuation milestone in the not-so-distant future.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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