Oracle Stock Dips Despite Continued Strong Backlog Growth. Should Investors Buy the Stock on the Dip?
Investors continue to worry about the return Oracle will get on its AI infrastructure spending.
Oracle Stock Dips Despite Continued Strong Backlog Growth. Should Investors Buy the Stock on the Dip?
Overview
Oracle (NYSE: ORCL) has become one of the biggest battleground stocks when it comes to artificial intelligence (AI), and investors were in a selling mood after the software-as-a-service (SaaS) and cloud computer provider reported its Q4 fiscal year 2026 results. While the stock has been volatile, it's down only about 5% on the year and up 5% over the past year.
Let's take a closer look at Oracle's results and prospects to see if the recent sell-off is a buying opportunity.
Details
While Oracle bulls get excited by the company's enormous cloud computing backlog, bears worry about the spending needed to build out capacity and the return it will get on these infrastructure investments. The buildout will also negatively impact gross margins initially, as there is a lag from its enormous spending (even though it is depreciated) and the revenue it generates. However, this is normal and not surprising or worrying.
Source
Originally published at www.fool.com.
