Oracle (ORCL) earned almost a quarter more operating income last fiscal year. Yet its stock closed around 53% below its peak of a year earlier on September 10, just before its latest results. A gap like that points to one of two things: the market sees trouble the numbers do not show yet,

Oracle shares have crashed on concerns over its AI infrastructure spending.

Oracle is scheduled to report earnings after the closing bell Thursday, with traders anticipating a big move from the database and cloud infrastructure giant’s stock.

Oracle's stock is trading at about 23 times its trailing profits, which is right in line with the S&P 500 average. While it may look cheaper these days, it may still not offer investors enough margin of safety to offset the risks associated with its high debt load and exposure to OpenAI.

Oracle Corporation is rated a Strong Buy with a revised price target of $194 following Q1 2027 results. Read more on ORCL stock here.

Oracle’s accelerating AI business and upbeat outlook could make the stock worth a closer look as its FY2027 ambitions take shape.