Oracle Stock Is Down 64% in 10 Months. Is This the Best Buying Opportunity in AI -- or a Falling Knife?
Oracle was one of the hottest AI stocks just nine months ago -- now it's down more than 63%. What gives?
Overview
Nine months ago, Oracle (NYSE: ORCL) was one of the hottest stocks in AI -- hotter than Nvidia, Alphabet, or Micron Technology. Shares have fallen nearly 60% since, even as its earnings have grown. Its price-to-earnings ratio (P/E) -- the price of the stock relative to its profits -- has collapsed from 76 at its September peak to about 22 today.
It sure looks like a buying opportunity, but there's an old Wall Street saying about situations like this: Never catch a falling knife. A stock dropping this fast usually has a reason, and reaching for it on the way down is how investors lose fingers.
Details
But sometimes the market overdoes it, and the "knife" turns out to be a bargain. So, which is Oracle?
Source
Originally published at www.fool.com.