Oracle's Stock Is Plummeting. Is This an Opportunity or a Red Flag?
The tech giant's earnings were impressive, but Wall Street is still nervous.
Oracle's Stock Is Plummeting. Is This an Opportunity or a Red Flag?
Overview
Oracle's (NYSE: ORCL) stock is getting pummeled after reporting its fourth-quarter and full-year fiscal 2026 earnings. Shares fell more than 12% after the software giant disclosed its plans to raise $40 billion through debt and equity financing. Only $20 billion of that raise had been previously announced. Oracle's free cash flow is negative for the fiscal year, with a cash burn of $23.7 billion.
The question for investors is whether Wall Street's expectations for tech companies have become untenable, or if this is a red flag for Oracle shareholders.
Details
The report wasn't bad in any sense. The tech company had record earnings per share, total revenues, and remaining performance obligations for Q4 2026. For the full fiscal year, it was a banner period, with revenues reaching $67.4 billion, a 17% increase. Earnings per share (EPS) were also up 34% to $5.83.
Source
Originally published at www.fool.com.
