What Could Light a Fire Under Oracle Stock
Oracle (ORCL) has demonstrated notable rallies historically. It recorded more than a 50% surge within two months in 2025. Additionally, there were seven instances where ORCL gained over 30% in under two months, notably in 2011 and 2024. If similar conditions arise, these powerful short-term rallies could drive Oracle stock to significant new heights again, rewarding shareholders substantially.
Triggers That Could Boost The Stock
- AI/OCI Hyperscale: Unprecedented RPO of $455 billion and projected OCI revenue reaching $144 billion by FY30, fueled by massive AI demand, positions Oracle for explosive cloud growth.
- Multi-Cloud Dominance: Oracle’s leadership in multi-cloud database services, with expected triple-digit growth and strategic partnerships across AWS, Azure, and Google Cloud, significantly expands its addressable market.
- AI Healthcare EHR: The 2025 launch of a new, AI-backed Oracle Health EHR platform, transitioning from a record-keeping system to a dynamic intelligence system for enhanced patient care and personalized workflows.
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How Do Financials Look Right Now
It certainly helps if the fundamentals check out. For details on ORCL Read Buy or Sell ORCL Stock. Below are a few numbers that matter.
- Revenue Growth: 9.7% LTM and 10.2% last 3-year average.
- Cash Generation: Nearly -10.0% free cash flow margin and 31.6% operating margin LTM.
- Valuation: Oracle stock trades at a P/E multiple of 58.6
| ORCL | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Application Software | – |
| PE Ratio | 58.6 | 23.7 |
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| LTM* Revenue Growth | 9.7% | 5.6% |
| 3Y Average Annual Revenue Growth | 10.2% | 5.3% |
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| LTM* Operating Margin | 31.6% | 18.8% |
| 3Y Average Operating Margin | 30.3% | 18.2% |
| LTM* Free Cash Flow Margin | -10.0% | 13.4% |
*LTM: Last Twelve Months
But How Does The Stock Do In Bad Times?
When looking at risk for Oracle, it’s clear that even strong companies can take a hit in market downturns. During the Dot-Com Bubble, ORCL fell about 77%, which is huge. The Global Financial Crisis pushed it down around 41%, and the Inflation Shock caused a similar 40% drop. Even smaller sell-offs like the 2018 Correction and the Covid Pandemic triggered declines close to 19% and 29%, respectively. Solid fundamentals matter, but when the market turns, Orcale’s history shows it’s not immune to steep losses.
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