Here’s Why This Analyst Is Bearish on Oracle Stock (ORCL) - The Cloud Giant’s Critical Weakness Exposed

Oracle's cloud ambitions hit a wall as analysts spot fatal flaws in their enterprise strategy.

The Database Dilemma

Legacy systems can't compete with cloud-native architectures. Oracle's core business faces existential threats from more agile competitors eating their lunch.

Cloud Computing Conundrum

While chasing AWS and Azure, Oracle's infrastructure investments haven't delivered promised returns. The numbers don't lie - and they're not pretty for long-term holders.

Enterprise Exodus

Major clients are quietly migrating to decentralized alternatives that offer better scalability at lower costs. The trend suggests Oracle's moat is evaporating faster than expected.

Wall Street's favorite dinosaur might need more than database magic to survive the coming tech winter. But what do analysts know - they still think blockchain is just about Bitcoin.

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The bearish outlook stems from the analyst’s belief that the market is overestimating the value of Oracle’s cloud business, particularly its contracted revenues from Oracle Cloud Infrastructure (OCI).

Haissl suggests that Oracle’s role in large-scale, single-tenant cloud deployments is more like a lender than a typical cloud provider.

Analyst Warns of Valuation Risk

According to his analysis, Oracle’s five-year OCI revenue guidance translates to about $60 billion in value. He believes this reflects an overly optimistic scenario unlikely to play out.

While investors are focused on headline growth numbers, Haissl expects scrutiny to shift toward the underlying economics, especially as non-IaaS (non-infrastructure) growth remains weak.

Taken together, these factors suggest significant downside risk, prompting the analyst to initiate coverage with a bearish outlook.

Oracle Launches AI Tool to Monitor Farming

Moving ahead with its AI product launches, Oracle introduced a new AI tool to help governments monitor and manage agricultural activity more efficiently. It uses satellite images and machine learning to check crop health, spot problems early, and improve how resources are used across farms.

The tool will give real-time updates to help governments protect food supplies, predict crop yields, and make faster, smarter farming decisions.

Oracle’s newly-appointed Co-CEO, Mike Sicilia, said, “With current advances in cloud computing, AI, and satellite technology, we can completely transform agriculture operations to support more predictable outputs.”

Is Oracle a Buy, Sell, or Hold?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on ORCL stock based on 26 Buys, eight Holds, and one Sell assigned in the past three months. Further, the average ORCL price target of $338.37 per share implies 15.87% upside potential.