Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing. The company also offers cloud-based industry solutions for various industries; Oracle application licenses; and Oracle license support services. In addition, it provides cloud and license business' infrastructure technologies, such as the Oracle Database and MySQL Database; Java, a software development language; and middleware, including development tools and others. The company's cloud and license business' infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities; and Oracle autonomous database and MySQL HeatWave, as well as Internet-of-Things, digital assistant, and blockchain. Further, it provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware services, as well as hardware support products; and consulting and customer services. The company markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels. Oracle Corporation was founded in 1977 and is headquartered in Austin, Texas.

Oracle appears to be a mature, profitable business with strong operating margins, but the market is already pricing in notably optimistic expectations. A P/E of 21.5 is below the industry median, which supports the valuation; however, a P/S of 5.62 and a P/B of 6.18 are significantly above industry benchmarks and point to an expensive valuation on both revenue and capital. The debt burden is especially concerning: a debt/equity ratio of 2.84 is well above the median, and long-term debt of $122.3 billion, combined with relatively modest equity, makes the balance sheet sensitive to interest rates and refinancing. Liquidity also does not look comfortable: a current ratio of 1.11 is below the industry level, and the quick ratio is effectively zero, indicating a weak immediate liquidity cushion. At the same time, the company’s profitability is very strong: ROE of 49.5%, ROA of 7.4%, ROI of 12.0%, net margin of 25.2%, and operating margin of 32.1% are all notably better than the industry, confirming the high quality of the current operating model. Margin trends are generally stable, although gross margin has gradually declined from higher levels last year, suggesting some pressure on gross efficiency. Revenue, EBITDA, operating profit, and net income have generally been growing in recent periods, which is an important positive for the valuation and partly offsets the expensive multiples. The cash position is strong in absolute terms, with cash on hand exceeding $37 billion, and both equity and assets continue to increase, supporting financial stability. The dividend yield of around 0.35% remains too low to be a meaningful revaluation factor for an income-oriented investor. Overall, the fundamentals are more high-quality than cheap: the business generates strong profits and is growing, but the valuation already reflects a significant portion of these strengths. Therefore, a moderate conservative downward adjustment is appropriate for the target forecast rather than an aggressive revision, since the company’s strong profitability and business growth limit the scale of any negative re-rating.

Oracle Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Медведи в растерянности.

Strong index, flat. The bears are confused.

Средний индекс, значительно вырос. Рынок на стороне быков.

Medium index, significantly up. The market is on the bulls' side.

Средний индекс, значительно упал. Рынок не поддерживает медведей.

Medium index, significantly down. The market does not support the bears.

Средний индекс, значительно упал. Увеличился отток средств из лонгов.

Medium index, significantly down. The outflow of funds from longs has increased.

Средний индекс, значительно вырос. Приток средств в шорты увеличился и находится на высоком уровне.

Medium index, significantly up. The inflow of funds into shorts has increased and is at a high level.

Oracle’s strong profitability and growth are offset by high P/S and P/B ratios, heavy debt load, and weak liquidity, so the valuation appears moderately overvalued.

In this video, I will cover the sell-off in AI stocks, CoreWeave's issues, Paul Tudor Jones' comments, and ASML's earnings, and explain what I am actually doing in response. Watch the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were from the trading day of Oct. 14, 2026. The video was published on Oct. 14, 2026.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Should you buy stock in Oracle right now?
Before you buy stock in Oracle, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oracle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 19, 2026.
Neil Rozenbaum has positions in CoreWeave. The Motley Fool has positions in and recommends ASML and Oracle. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Is the AI Trade Cracking? What CoreWeave, Paul Tudor Jones, and ASML Are Telling Us

The S&P 500 Index ($SPX) (SPY) is up by +0.57% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.11%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.52%. December E-mini S&P futures (ESZ26) are up +0.58%, and December E-mini Nasdaq futures (NQZ26) are up +1.51%.
Stock indexes are mostly higher today, with chipmakers and AI-infrastructure stocks leading the broader market higher after last week’s selloff. Earnings optimism is lifting stocks ahead of this week's earnings results from Meta Platforms, Tesla, and Netflix. Also, weaker crude oil prices today have improved market sentiment and are supportive of stocks.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
On the downside, homebuilders are under pressure after today’s US economic news showed the Oct NAHB housing market index fell 3 points to a 14-year low of 29, below expectations of 31.
Mostly better-than-expected Chinese economic news is positive for global growth prospects and stocks. China Q3 GDP rose +1.2% q/q and +4.5% y/y, stronger than expectations of +1.0% q/q and +4.4% y/y. Also, China's Sep industrial production rose +5.5% y/y, right on expectations and the largest increase in 6 months. In addition, China's Sep retail sales rose +1.1% y/y, stronger than expectations of +0.5% y/y and the largest increase in 6 months. Finally, China's Sep surveyed jobless rate unexpectedly fell -0.1 to 5.2%, below the expected 5.3% and signaling a stronger labor market. On the downside, China's Sep new home prices fell -0.14% m/m, the fortieth consecutive month of declines.
Stocks have support from the prospect of solid quarterly earnings results. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of today, 45 of the S&P 500 companies have reported results, with 80% beating estimates.
Nov WTI crude oil prices (CLX26) are moving lower today on some profit-taking after last week's rally to a 5-week high. US Energy Secretary Wright said Persian Gulf oil flows have recovered to about 80% of their pre-war level, though refined-product shipments remain constrained. Crude oil prices have underlying support from concerns about disruptions to Middle Eastern energy supplies after Houthi rebels in Yemen targeted Yanbu in Saudi Arabia, a significant Red Sea port for Saudi oil exports that avoids the Strait of Hormuz, with missiles and drones. Also, the UK Maritime Trade Operations reported that two tankers were attacked in the Persian Gulf near Saudi Arabia's port city of Jubail over the weekend.
Markets are discounting a 17% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell to a 1-week low today and is down -1.18%. China's Shanghai Composite closed up +0.39%. Japan's Nikkei-225 Stock Average fell to a 1-month low and closed down -0.62%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -4 ticks. The 10-year T-note yield is up +3.2 bp to 5.127%. Today’s stock rally has reduced safe-haven demand for government debt, weighing on T-notes. Losses in T-notes are limited amid some safe-haven buying due to the social unrest in France. Weaker WTI crude oil prices today are also lowering inflation expectations and supporting T-notes.
European government bond yields are moving higher today. The 10-year German bund yield is up +3.6 bp to 3.462%. The 10-year UK gilt yield is up +5.7 bp to 5.430%.
The German Bundesbank said in a report today that "inflation risks in the Eurozone are clearly tilted to the upside."
Markets are discounting an 8% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks are moving higher today, recovering some of last week’s rout. The iShares Semiconductor ETF (SOXX) is up more than +2%. SanDisk (SNDK) is up more than +6% to lead gainers in the S&P 500 and Nasdaq 100, and Western Digital (WDC) is up more than +6%. Also, Marvell Technology (MRVL) is up more than +5%, and Intel (INTC), Seagate Technology Holdings Plc (STX), Lam Research (LRCX), and Micron Technology (MU) are up more than +4%. In addition, Advanced Micro Devices (AMD) and Applied Materials (AMAT) are up more than +3%, and Analog Devices (ADI), KLA Corp (KLAC), Broadcom (AVGO), and Qualcomm (QCOM) are up more than +2%.
The Magnificent Seven stocks, excluding Meta, are up today, supporting broader market gains. Amazon.com (AMZN) is up more than +4% to lead gainers in the Dow Jones Industrials, and Tesla (TSLA) is up more than +3%. Also, Nvidia (NVDA), Alphabet (GOOGL), and Microsoft (MSFT) are up more than +1%. In addition, Apple (AAPL) is up +0.14%. Conversely, Meta Platforms (META) is down -0.87%.
Cloud infrastructure stocks are climbing today. Applied Digital (APLD) is up more than +8%, and Nebius Group NV (NBIS) and Lumentum Holdings (LITE) are up more than +3%. Also, CoreWeave (CRWV) and Arista Networks (ANET) aew up more than +2%, and Oracle (ORCL) is up more than +1%.
Home builders and building supplies are slipping today after the US Oct NAHB housing market index fell more than expected to a 14-year low. DR Horton (DHI) and Pulte Group (PHM) are down more than -2%, and Lennar (LEN), KB Home (KBH), Toll Brothers (TOL), and Builders Firstsource (BLDR) are down more than -1%.
Disc Medicine (IRON) is up more than +39% after announcing that its investigational drug bitopertin met all primary and secondary endpoints in a Phase 3 Apollo trial in adults and adolescents with erythropoietic protoporphyria.
Cleveland Cliffs (CLF) is up more than +13% after reporting Q3 adjusted Ebitda of $612 million, above the consensus of $591.5 million.
Datadog (DDOG) is up more than +5% after Bernstein upgraded the stock to outperform from market perform with a price target of $350.
NRG Energy (NRG) is down more than -5% to lead losers in the S&P 500 after Jeffries cut its price target on the stock to $131 from $160.
Ameriprise Financial (AMP) is down more than -3% after Bank of America Global Research double-downgraded the stock to underperform from buy with a price target of $445.
Earnings Reports (10/19/2026)
AGNC Investment Corp (AGNC), BOK Financial Corp (BOKF), Cleveland-Cliffs Inc (CLF), Crown Holdings Inc (CCK), Fifth Third Bancorp (FITB), FNB Corp/PA (FNB), RLI Corp (RLI), Steel Dynamics Inc (STLD), W R Berkley Corp (WRB), Western Alliance Bancorp (WAL), Wintrust Financial Corp (WTFC), Zions Bancorp NA (ZION).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Strength in Chipmakers and AI-Infrastructure Stocks Lead the Broader Market Higher

Key Points
Oracle's debt levels and high bond yields have increasingly concerned investors.
Today, OpenAI makes up less than half of Oracle's backlog.
Oracle's low valuation could make it more attractive to risk-tolerant investors.
Investors have good reason to be concerned about Oracle (NYSE: ORCL) stock. The company has borrowed heavily to finance its transformation into an artificial intelligence (AI) cloud stock. Moreover, much of its backlog depends on OpenAI, a company that has not performed to expectations financially.
Despite that concern, investors may take comfort in the company's considerable backlog. Even if OpenAI does not perform to expectations, that backlog could still drive Oracle's growth story, and here's how.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
The state of Oracle today
Indeed, Oracle's growth story is likely hiding in the company's $664 billion backlog.
To serve its customers, Oracle has accumulated more than $125 billion in debt to finance the infrastructure needed to meet the demand for its AI cloud services. Since Oracle has a book value of around $67 billion, that debt places significant strain on the company's balance sheet, sparking concern that it could derail its AI cloud ambitions.
Furthermore, yields on some of its corporate bonds have risen above 8%. While that does not compare to the 15% bond yields of a neocloud company like CoreWeave, it has sparked investor concern.
Additionally, nearly half of that is the $300 billion deal it made with OpenAI. Investors have become increasingly skeptical about whether it can afford to honor its agreement with Oracle.
But Oracle has a tremendous backlog without OpenAI. That backlog grew by $209 billion over the previous 12 months, approximately two-thirds the size of its OpenAI deal. Such improvements increase the likelihood that it can monetize its AI investments with or without OpenAI.
Investors can also take comfort in the fact that its revenue for the first quarter of fiscal 2027 (ended Aug. 31) was over $19 billion. That was 30% higher than the year-ago level, and nearly all of that growth came from its cloud segment.
Despite rapidly rising interest expenses, net income in fiscal Q1 was almost $4.8 billion, a 63% yearly increase. Hence, at least for now, the company continues to profit from its AI investments.
Furthermore, it differs from CoreWeave in one key respect. Although an AI downturn would almost certainly bring significant pain, investors should not overlook Oracle's non-cloud segments. Even though they are now slow-growth businesses, they keep the company profitable and could serve as a stabilizing force during a downturn.
Amid the stock sell-off, its price-to-earnings (P/E) ratio has fallen to just 20. Even though the high debt load may justify the lower valuation, it has maintained an average P/E ratio of 35 over the last five years, implying a discount that more risk-tolerant investors might find attractive.
Oracle amid the backlog
Oracle stock is probably worth considering for risk-tolerant investors, given the $664 billion backlog.
Admittedly, that backlog does not absolutely guarantee future revenue. Also, its considerable debt has meaningfully strained Oracle's finances.
However, Oracle has a massive backlog even without OpenAI's $300 billion share of that. Moreover, it has a growing cloud business and other segments that are slow-growing but stable.
Finally, Oracle now trades at a low P/E ratio. That arguably makes a strong case for buying the cloud stock and reaping the benefits expected from its backlog.
Should you buy stock in Oracle right now?
Before you buy stock in Oracle, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oracle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 17, 2026.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Oracle's Real Growth Story Is Hiding in Its $664 Billion Backlog

The S&P 500 Index ($SPX) (SPY) closed down by -1.09% on Friday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.34%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.50%. December E-mini S&P futures (ESZ26) fell -1.14%, and December E-mini Nasdaq futures (NQZ26) fell -2.51%.
Stock indexes sold off sharply on Friday, with the S&P 500 falling to a 2-week low and the Nasdaq 100 dropping to a 1-month low. Selling in chipmakers and AI-infrastructure stocks led the market lower on Friday, driven by concerns about whether companies will see returns on their huge investments in the AI infrastructure buildout. Also, CoreWeave sank more than -11% to weigh on cloud infrastructure stocks as concerns about the company’s credit risk linger.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stock losses accelerated Friday afternoon as crude oil prices soared more than 3% to a 1-month high, raising inflation expectations and fueling fears the Fed will keep raising interest rates to contain inflation.
Higher bond yields undercut stocks after Fed Chair Warsh made no remarks on monetary policy or his outlook for the US economy late Thursday evening at the IMF annual meeting in Bangkok. The 10-year T-note yield rose +1 bp to 5.09%.
Friday’s US economic news was mixed for stocks. The Sep import price index ex-petroleum rose +0.8% m/m, stronger than expectations of +0.6% m/m, the largest increase in 5 months and a sign of price pressures. However, Sep manufacturing production rose +0.3% m/m, right on expectations.
Stocks have support from the prospect of solid quarterly earnings results that began this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of Friday, 40 of the S&P 500 companies have reported results, with 78% beating estimates.
Nov WTI crude oil prices (CLX26) surged more than +3% on Friday to a 1-month high. Crude prices rallied on Friday amid a weaker dollar and concerns that escalating Middle East hostilities could disrupt regional energy supplies. Prices race to their highs Friday afternoon after US lawmakers introduced a bill to block President Trump’s deal with Russia to release several hundred million barrels of diesel fuel.
Markets are discounting a 17% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled higher on Friday. The Euro Stoxx 50 closed up +0.58%. China's Shanghai Composite closed up +0.24%. Japan's Nikkei-225 Stock Average closed up +1.39%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down -2.5 ticks on Friday. The 10-year T-note yield rose +2.7 bp to 5.085%. Dec T-notes were under pressure Friday after Fed Chair Warsh's lack of guidance at the annual IMF meeting in Bangkok weighed on T-notes. Also, Friday’s +3% surge in WTI crude oil to a 1-month high raised inflation expectations and weighed on T-notes. Friday’s stock plunge sparked safe-haven buying of government debt and limited T-note losses.
European government bond yields were mixed on Friday. The 10-year German bund yield rose +1.3 bp to 3.426%. The 10-year UK gilt yield fell -0.2 bp to 5.373%.
ECB Governing Council member and Bundesbank President Joachim Nagel said. "The ECB has raised interest rates twice, and if the situation remains as it is, we don't rule out the possibility that we may have to take further action."
Markets are discounting a 10% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks continued their week-long slide on Friday, weighing on the broader market. Seagate Technology Holdings Plc (STX) closed down more than -7%, and Western Digital (WDC), SanDisk (SNDK), and ARM Holdings Plc (ARM) closed down more than -6%. Also, Advanced Micro Devices (AMD), Micron Technology (MU), Intel (INTC), and Marvell Technology (MRVL) closed down more than -5%, and Lam Research (LRCX), KLA Corp (KLAC), Applied Materials (AMAT), and Broadcom (AVGO) closed down more than -4%. In addition,
CoreWeave (CRWV) closed down more than -11% to weigh on cloud infrastructure stocks as debt concerns linger after swaps priced in more than a 50% chance the company will default on its debt within five years. Also, Nebius Group NV (NBIS) closed down more than -12% to lead losers in the Nasdaq 100, and Applied Digital (APLD) closed down more than -11%. In addition, Lumentum Holdings (LITE) closed down more than -5%, and Oracle (ORCL) and Arista Networks (ANET) closed down more than -4%.
The Magnificent Seven stocks, excluding Apple, fell on Friday and weighed on the overall market. Meta Platforms (META) closed down more than -3%, and Alphabet (GOOGL) closed down more than -2% to lead losers in the Dow Jones Industrials. Also, Tesla (TSLA) closed down more than -2%, and Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA) closed down more than -1%. Apple (AAPL) bucked the trend and closed up +0.43%.
Cybersecurity stocks retreated on Friday. Okta (OKTA) closed down more than -10%, and SentinelOne (S), Fortinet (FTNT), Crowdstrike Holdings (CRWD), and Palo Alto Networks (PANW) closed down more than -7%. Also, Cloudflare (NET) closed down more than -6%, Zscaler (ZS) closed down more than -5%, and Gen Digital (GEN) closed down more than -2%.
Energy producers and service providers rallied on Friday after WTI crude oil rose more than +3% to a 1-month high. APA Corp (APA) closed up more than +4%, and Diamondback Energy (FANG) closed up more than +4% to lead gainers in the Nasdaq 100. Also, ConocoPhillips (COP) and Devon Energy (DVN) closed up more than +3%, and Chevron (CVX) closed up more than +2% to lead gainers in the Dow Jones industrials. In addition, Baker Hughes (BKR), ExxonMobil Holdings (XOM), Occidental Petroleum (OXY), and SLB Ltd (SLB) closed up more than +2%, and Halliburton (HAL) and Phillips 66 (PSX) closed up more than +1%.
Defense contractors rose on Friday as the companies are set to benefit from increased defense spending. Northrop Grumman (NOC) closed up more than +4%, and Lockheed Martin (LMT), RTX Corp (RTX), and L3Harris Technologies (LHX) closed up more than +3%. Also, General Dynamics (GD) closed up more than +2%, and Huntington Ingalls Industries (HII) closed up more than +1%.
Defensive food producers moved higher on Friday amid the slump in the broader market. Kraft Heinz Co (KHC), McCormick & Co (MKC), J M Smucker (SJM), Hershey Co (HSY), Hormel Foods (HRL), and Mondelez International (MDLZ) closed up more than +1%.
Omeros (OMER) closed down more than -14% after the European Medicines Agency issued a negative opinion on the company’s application for its narsoplimab therapy.
Earnings Reports (10/19/2026)
AGNC Investment Corp (AGNC), BOK Financial Corp (BOKF), Cleveland-Cliffs Inc (CLF), Crown Holdings Inc (CCK), Fifth Third Bancorp (FITB), FNB Corp/PA (FNB), RLI Corp (RLI), Steel Dynamics Inc (STLD), W R Berkley Corp (WRB), Western Alliance Bancorp (WAL), Wintrust Financial Corp (WTFC), Zions Bancorp NA (ZION).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stock Indexes Finish Sharply Lower as Tech Stocks Plunge

Key Points
Oracle's remaining performance obligations hit $664 billion, up $209 billion year over year, giving it a long runway for AI cloud growth.
A database foundation and a multicloud strategy let customers add AI to the systems they already use without a disruptive migration.
Heavy data center spending has pushed free cash flow negative, and investors are watching whether Oracle can turn its backlog into profits.
When investors think about cloud computing, Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT) are often the first names that come to mind. But Oracle (NYSE: ORCL) is also making a strong push into AI infrastructure, and its rapidly growing cloud business offers another way to ride the AI boom.
With $5,000 to put to work today, investors may find Oracle a more compelling cloud choice than either of those giants. The reason starts with how fast its cloud business is growing.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
This database giant is becoming a major force in AI cloud
Oracle may be best known for its database software, which businesses use to store and manage critical information. These days, that established business is laying the foundation for a much bigger opportunity: supplying the cloud infrastructure that other companies need to develop and run AI models.
Oracle's cloud infrastructure business is already seeing solid growth, with revenue climbing 121% to $7.4 billion in its most recent quarter. That suggests its cloud business is becoming an important growth engine rather than simply an extension of its traditional software business.
Its massive backlog, meanwhile, provides a longer runway for growth. Oracle's remaining performance obligations (RPO) reached a record $664 billion, up $209 billion year over year. RPO represents contracted revenue that has not yet been recognized, giving investors a clearer view of the company's future revenue.
That means Oracle is seeing surging demand from customers that need cloud capacity for AI training, applications, and inference. Still, that demand isn't limited to one type of customer, and Oracle is positioning itself to capture several parts of that market.
But with competition picking up, the next question is how Oracle is setting itself apart from the biggest names in the cloud business.
Oracle has a different advantage from its larger cloud rivals
Microsoft Azure and Alphabet's Google Cloud compete across broad cloud ecosystems. However, Oracle's opportunity is somewhat different: it has the luxury of combining its established database business with cloud infrastructure designed for demanding enterprise workflows.
That matters because companies wouldn't want to rebuild their IT systems every time a new AI model arrives. Oracle's database expertise helps here, allowing companies to integrate AI into the systems and data they already rely on without disrupting operations.
Its multicloud strategy also allows customers to access Oracle database services through major cloud platforms, including Amazon Web Services, Microsoft Azure, and Google Cloud. Instead of requiring customers to migrate everything to Oracle's cloud, it can meet businesses where their existing systems reside.
On top of that, Oracle's established software business provides a source of recurring revenue. Its cloud applications include enterprise resource planning, human resources, and supply chain tools that businesses use to run their daily operations.
That combination of AI-driven growth and recurring software revenue gives the company multiple avenues to expand, which only strengthens the bull case for Oracle.
Still, even a strong bull case needs a reasonable price point and manageable risks.
Is Oracle stock a buy after its recent pullback?
A consensus rating for Oracle among 42 analysts is a strong buy, with target prices indicating between 87% (average) and 206% (highest) upside over the next 12 months. Plus, at about 20 times earnings, Oracle doesn't look too expensive, especially considering its rapid cloud growth.
That said, Oracle is spending heavily to build the data centers needed to serve its customers. And that investment is already weighing on its free cash flow, which means Oracle is spending more than its operations generate. Overspending is a real risk, as the concern is whether Oracle can convert its customer commitments into sufficient revenue to deliver a decent return on those investments.
Looking ahead, if Oracle can turn its massive backlog into lasting profits, today's pullback could be an attractive entry point for long-term investors.
Oracle may not get the same attention as Alphabet or Microsoft, but its growing cloud business and expansion into AI make it worth a closer look. With $5,000, investors can gain meaningful exposure to that opportunity.
Should you buy stock in Oracle right now?
Before you buy stock in Oracle, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oracle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $391,581!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,780!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 16, 2026.
Rick Orford has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Oracle. The Motley Fool has a disclosure policy.

Not Alphabet. Not Microsoft. This Is the Cloud Stock I'd Buy With $5,000 Right Now.

The S&P 500 Index ($SPX) (SPY) closed up by +0.33% on Thursday, the Dow Jones Industrial Average ($DOWI) (DIA) closed up by +1.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.05%. December E-mini S&P futures (ESZ26) rose +0.28%, and December E-mini Nasdaq futures (NQZ26) fell -0.14%.
Stock indexes settled mixed on Thursday, with the Nasdaq 100 dropping to a 3.5-week low. Stocks recovered from early losses on Thursday to trade mixed as bond yields fell and as investors rotated out of chip stocks into software and pharmaceutical companies.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
The Nasdaq 100 was under pressure on Thursday amid concerns about the sustainability of the artificial intelligence trade. This week’s rout in chipmakers and AI-infrastructure stocks spread globally, with South Korea’s Kospi Index sinking more than 7% and China’s Shanghai Composite falling to a 14-month low. Thursday’s drop in chipmakers followed Anthropic PBC's disclosure of $16.8 billion in Q3 growth to prospective investors, figures that suggest growth has slowed even as it remains robust.
Stocks were also pressured on Thursday on rising US producer price pressures after the Sep PPI final demand rose +6.3% y/y, stronger than expectations of +5.4% y/y and the most in 3.75 years. Also, Sep PPI ex-food and energy rose +5.0% y/y, stronger than expectations of +4.4% y/y and the most in more than 3.5 years.
Other US economic news on Thursday was mixed, with Sep retail sales and the Oct Empire manufacturing survey rising more than expected and weekly jobless claims near expectations. However, the Oct Philadelphia Fed business outlook survey fell more than expected.
On the positive side, Thursday’s slump in global equity markets sparked a rally in government bond markets, knocking yields lower. The 10-year German Bund yield fell to a 5-week low on Thursday of 3.35%, and the 10-year T-note yield fell to a 3-week low of 5.04%.
US weekly initial unemployment claims rose by +1,000 to 199,000, close to expectations of 200,000.
US Sep retail sales rose +0.8% m/m, stronger than expectations of +0.3% m/m, and Sep retail sales ex-autos rose+0.9% m/m, stronger than expectations of +0.5% m/m.
The US Oct Philadelphia Fed business outlook survey fell by -16.9 to 20.9, weaker than expectations of 28.0.
The US Oct Empire manufacturing survey of general business conditions rose +17.9 to a 4.75-year high of 25.5, stronger than expectations of 12.0.
Stocks and bonds got some support Thursday after San Francisco Fed President Mary Daly said she thinks rate hikes are likely needed, just not immediately, and that she would hold interest rates steady at the October 27-28 FOMC meeting.
Stocks have support from the prospect of solid quarterly earnings results that began this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%. As of Thursday’s close, 38 of the S&P 500 companies have reported results, with 82% beating estimates.
Nov WTI crude oil prices (CLX26) rallied more than +3% on Thursday to a 3-week high. Crude prices are supported by risks to global oil supplies as Yemen's Houthi rebels continue drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East. Crude prices raced to their high Thursday after weekly EIA crude inventories unexpectedly fell by -8.56 million bbl.
Markets are discounting a 27% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled lower on Thursday. The Euro Stoxx 50 closed down -0.36%. China's Shanghai Composite fell to a 14-month low and closed down -1.59%. Japan's Nikkei-225 Stock Average dropped to a 4-week low and closed down sharply by -4.90%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +21 ticks on Thursday. The 10-year T-note yield fell -10.0 bp to 5.085%. Dec T-notes rallied to a 3-week high on Thursday, and the 10-year T-note yield fell to a 3-week low of 5.035%. Lower inflation expectations were supportive of T-notes after the 10-year breakeven inflation rate fell to a 1-week low of 2.320% on Thursday. Also, dovish comments from San Francisco Fed President Mary Daly were bullish for T-notes when she suggested she would support holding interest rates steady at the October 27-28 FOMC meeting.
Hawkish US economic news on Thursday was bearish for T-notes after US Sep producer prices and Sep retail sales rose more than expected, and the Oct Empire manufacturing survey's general business conditions rose to a 4.75-year high.
European government bond yields moved lower on Thursday. The 10-year German bund yield fell to a 5-week low of 3.353% and finished down -5.3 bp to 3.413%. The 10-year UK gilt yield fell to a 1.5-week low of 5.301% and finished down -5.0 bp to 5.374%.
Eurozone Aug industrial production fell -0.5% m/m, weaker than expectations of no change and the biggest decline in 7 months.
ECB Governing Council member Martins Kazaks said the ECB can afford to take its time adjusting interest rates, despite persistent energy price rises that are set to keep consumer price growth elevated, as the recent surge in government bond yields may start to weigh on economic activity.
UK Aug manufacturing production rose +1.2% m/m, stronger than expectations of no change and the largest increase in 9 months.
Markets are discounting a 9% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Software stocks rallied on Thursday as investors rotate out of chip stocks into software. Intuit (INTU) and ServiceNow (NOW) closed up more than +6%, and Atlassian (TEAM) and Autodesk (ADSK) closed up more than +5%. Also, Workday (WDAY), Salesforce (CRM), and Adobe Systems (ADBE) closed up more than +4%, Oracle (ORCL) closed up more than +3%, and Thomson Reuters (TRI) closed up more than +2%.
Pharmaceutical stocks moved higher on Thursday amid stock rotation out of AI stocks. Alnylam Pharmaceuticals (ALNY) closed up more than +4%, and Eli Lilly (LLY) and Ionis Pharmaceuticals (IONS) closed up more than +3%. Also, Gilead Sciences (GILD), Vertex Pharmaceuticals (VRTX), Regeneron Pharmaceuticals (REGN), and Jazz Pharma Plc (JAZZ) closed up more than +2%. and Amgen (AMGN) and Biogen (BIIB) closed up more than +1%.
Cryptocurrency-exposed stocks rallied on Thursday after Bitcoin (^BTCUSD) rebounded from a 3.5-week low and moved higher. Circle Internet Group (CRCL) closed up more than +9%, and Coinbase Global (COIN) closed up more than +6%. Also, Strategy (MSTR) closed up more than +5%, and Bullish (BLSH) and BitMine Immersion Technologies (BMNR) closed up more than +4%. In addition, Riot Platforms (RIOT) and Robinhood Markets (HOOD) closed up more than +2%, and MARA Holdings (MARA) and Galaxy Digital Holdings (GLXY) closed up more than +1%.
Chipmakers and AI-infrastructure stocks fell on Thursday on demand concerns after Anthropic disclosed Q3 revenue growth that likely slowed from the previous quarter. Applied Materials (APLD), Lam Research (LRCX), and Seagate Technology Holdings Plc (STX) closed down more than -3%, and Intel (INTC), KLA Corp (KLAC) and Western Digital (WDC) closed down more than -2%. In addition, Nvidia (NVDA), Advanced Micro Devices (AMD), Marvell Technology (MRVL), and SanDisk (SNDK) closed down more than -1%.
Penske Automotive Group (PAG) closed up more than +8% after entering a deal to be taken private for $212 a share in cash by Penske Corporation and Mitsui.
International Paper (IP) closed up more than +6% after the Financial Times reported that private equity firms Lone Star and Atlas Holdings are exploring bids to acquire the company.
Kimberly-Clark (KMB) closed up more than +4% after reporting preliminary Q3 net sales of $4.13 billion, above the consensus of $4.10 billion.
FMC Corp (FMC) closed down more than -30% after cutting its Q3 adjusted Ebitda forecast to a loss of -$510 million to -$565 million, after previously expecting a profit of$120 million to $140 million.
Hewlett Packard Enterprise (HPE) closed down more than -7% to lead losers in the S&P 500, adding to Wednesday’s -7 decline, and Dell Technologies (DELL) closed down more than -6%, adding to Wednesday’s 10% plunge after Barclays downgraded the stocks to equal weight from overweight.
Rocket Lab (RKLB) closed down more than -6% to lead losers in the Nasdaq 100 after announcing that it will delay the launch of its inaugural Neutron medium-lift rocket until sometime in 2027.
Earnings Reports (10/16/2026)
Citizens Financial Group Inc (CFG), M&T Bank Corp (MTB), Regions Financial Corp (RF), Travelers Cos Inc/The (TRV), Truist Financial Corp (TFC).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Settle Mixed as Broader Market Recovers from Chip Stock Rout

Oracle (NYSE:ORCL), an enterprise cloud software and database platform provider, closed at $130.55, down 8.83%. Oracle fell on Wednesday after hotter-than-expected September Consumer Price Index (CPI) data lifted Treasury yields and revived rate-hike bets. Investors are also watching AI cloud expansion costs and the next earnings update on December 14, 2026.
Trading volume reached 50.4 million shares, coming in about 61% above its three-month average of 31.3 million shares.
How the markets moved today
S&P 500 (SNPINDEX: ^GSPC) closed at 7,721, down 1.08%, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) finished at 26,693, down 1.88%. Among enterprise software, cloud infrastructure, and database management peers, Salesforce (NYSE:CRM) closed at $236.00, down 0.84%, while SAP (NYSE:SAP) closed at $220.40, up 0.30%.
What this means for investors
Oracle shares were already under pressure from financing and execution worries around AI cloud expansion, including its Project Jupiter data center, which is pending government approvals, and power logistics costs. The company's spending on AI infrastructure has resulted in its debt heading toward $167 billion, and a revenue timing gap before OpenAI-related contract revenue starts in 2027. As a result, Oracle's credit rating was downgraded to BBB-, one notch above speculative grade.
The CPI data pointing to elevated inflation suggests more federal rate increases could come, making Oracle's growing debt load and shrinking free cash flow a risk for investors. One outcome of the situation could be that Oracle has to cut its dividend.
That said, in September, Oracle reported outstanding revenue growth of 30% year over year to $19.3 billion for its 2027 fiscal first quarter, ended Aug.31. The increase was driven by triple-digit cloud infrastructure gains, so investors are now weighing that momentum against heavier spending. Oracle's next earnings announcement on December 14 will be the clearest test of whether cloud demand can offset margin pressure and borrowing needs.
Should you buy stock in Oracle right now?
Before you buy stock in Oracle, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oracle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,986!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,404,152!*
Now, it’s worth noting Stock Advisor’s total average return is 948% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 14, 2026.
Robert Izquierdo has positions in Oracle and Salesforce. The Motley Fool has positions in and recommends Oracle and Salesforce. The Motley Fool recommends SAP. The Motley Fool has a disclosure policy.

Stock Market Today, Oct. 14: Oracle Tumbles on Hotter CPI Data Lifting Treasury Yields

Key Points
Nvidia is quietly becoming more than a pure play GPU designer.
SpaceX is signing high-profile AI infrastructure deals, but these capacity agreements come at a high cost.
While SpaceX could be a larger company in the long-run, Nvidia is the more predictable opportunity heading into next year.
Investors looking for ways to profit from artificial intelligence (AI) have an interesting choice heading into 2027. On one side is Nvidia (NASDAQ: NVDA), the company that essentially supplies the picks and shovels of the AI boom. On the other is Space Exploration Technologies (NASDAQ: SPCX), which has evolved from a rocket company into a vertically integrated technology platform spanning Starlink, AI infrastructure, government contracting, and space exploration.
Both companies have enormous catalysts heading into 2027 and each stock comes with expectations that leave little room for disappointment. But if I had to choose only one for next year, I think the answer comes down to a surprisingly simple idea: which company has the more predictable path to turning AI spending into profits?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Nvidia's next big opportunity is already here
The biggest catalyst for Nvidia stock in 2027 is the transition from the Blackwell chip architecture to the Vera Rubin platform. Rubin isn't some distant product roadmap. Management says the platform is already ramping into full production, with systems running at Google Cloud, Microsoft Azure, Oracle Cloud Infrastructure, CoreWeave, and Nebius. For the third quarter, Nvidia's server CPU ecosystem, which includes Rubin, is expected to generate $20 billion in revenue and is on pace to more than double by next year.
Rubin is arriving while Nvidia's existing businesses are still growing at a staggering pace. During the second quarter, the company's revenue reached $96.2 billion, up 106% year over year. As usual, the data center segment was the star of the show -- generating $89 billion of revenue and soaring 117% year over year. Management guided third-quarter revenue of approximately $108 billion.
The interesting part of this forecast is that it does not assume any compute revenue from China. This highlights one of Nvidia's biggest potential catalysts for 2027. If China becomes a meaningful market again, Nvidia could have upside that isn't currently reflected in its guidance.
There are risks when it comes to buying Nvidia stock. Alphabet, Amazon, Microsoft, and Meta Platforms are developing custom AI chips. Meanwhile, Advanced Micro Devices continues to win deals with hyperscalers as it tries to take market share in the GPU and CPU landscapes. At a macro level, Nvidia will also need AI infrastructure spending to remain elevated.
SpaceX could be a bigger growth story in the long-run
SpaceX enters 2027 from a much different position. In the second quarter, the company's revenue nearly doubled to $7.8 billion. Growth was primarily fueled by Starlink and AI infrastructure.
SpaceX has signed billions of dollars of AI compute agreements with Anthropic, Google, and Reflection AI. In addition, management recently disclosed two other cloud hosting agreements expected to contribute roughly $1.11 billion of monthly revenue beginning in December as well as another six-month, $6.7 billion capacity deal.
SpaceX says its combined businesses are on track to reach $100 billion in annualized run-rate revenue by the end of the year. Management also expects cumulative compute capacity to approach 10 gigawatts by the end of 2027, underscoring the importance of AI to the growth narrative.
This creates an interesting flywheel. At scale, SpaceX can generate cash from Starlink and its launch cadence and reinvest into AI infrastructure. In the long-run, the company can use Starship to deploy next-generation communications and compute infrastructure into orbit. Taken together, SpaceX believes its rockets, connectivity, and AI infrastructure create a $28.5 trillion addressable market.
The problem is cost. SpaceX spent $18.4 billion on capital expenditures (capex) during the second quarter alone and remains free cash flow negative. Smart investors understand that spectacular growth doesn't necessarily guarantee a stock will rise if enormous capital outlays are required.
Nvidia is my better buy for 2027
SpaceX may have a larger opportunity in the long-run. But for 2027 specifically, Nvidia is my better stock to buy. The reason isn't that SpaceX lacks meaningful catalysts. In fact, it's almost the opposite. SpaceX is simultaneously scaling Starlink, building AI data centers, developing Starship, expanding government operations, and pursuing space-based infrastructure. If these bets pay off, today's business will look much different down the road.
Nvidia offers something I value more over the next year: visibility. For Nvidia, AI spending is already translating into enormous revenue, high gross margins, and substantial cash generation. Rubin provides a new product cycle heading into next year, while unrelenting demand from hyperscalers, frontier labs, sovereign governments, and enterprises continues expanding.
Nvidia's recently expanded share repurchase program also gives it another quiet advantage. The company now has $235 billion remaining under its authorization, providing significant firepower to buy back stock through next year. When combined with an attractive valuation profile, Nvidia is hard to pass up.
While SpaceX may be a more exciting story heading into 2027, the reality is that the company could bring more unpredictable surprises than I'd like to see. When I'm choosing between two growth stocks, I'd rather own the company where secular tailwinds are already producing recurring profits than the one still spending aggressively to build its next engine. For this reason, I think Nvidia offers a cleaner investment setup. SpaceX should belong on a watchlist, but I see Nvidia stock as the more prudent choice for 2027.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $370,440!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,470,022!*
Now, it’s worth noting Stock Advisor’s total average return is 955% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 7, 2026.
Adam Spatacco has positions in Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool has a disclosure policy.

SpaceX vs. Nvidia: Which Is the Better Trillion-Dollar Artificial Intelligence (AI) Stock for 2027?

Palantir Technologies PLTR has gained roughly 42% over the past three months, reflecting growing investor confidence in the company’s artificial intelligence strategy, accelerating commercial adoption and expanding government presence. While the share-price rally raises valuation concerns, PLTR’s improving economics and increasingly entrenched position within customer operations strengthen the long-term investment case.
Palantir’s Ontology Creates a Powerful Enterprise Foundation
One of Palantir’s most important competitive advantages is its Ontology framework. Rather than treating enterprise information as disconnected data points, the platform models an organization around the real-world assets, customers, orders, facilities and operational relationships that define its business.
This structure allows applications to act on enterprise information within established rules, permissions and workflows. As a result, Palantir is positioned to become more than an analytics vendor. Its software can operate as a digital foundation connecting data, decisions and business processes.
The investment case becomes particularly compelling as artificial intelligence adoption expands. More capable AI models alone do not guarantee meaningful business outcomes. Enterprises still need systems that connect models with trusted data, workflows and controlled actions. Palantir’s Artificial Intelligence Platform, or AIP, addresses this gap by helping organizations deploy AI within operational environments rather than keeping it confined to experimental applications.
Once a customer builds its initial use case around Palantir’s platform, additional applications can be created on the same underlying structure. This potentially improves returns on the original implementation while increasing the difficulty and cost of replacing the platform.
Growth and Customer Spending Remain Exceptional
Palantir delivered another exceptionally strong quarter, with revenues reaching $1.94 billion and advancing 93% year over year. U.S. commercial revenues rose 149% to $764 million, while U.S. government revenues climbed 90% to $809 million.
The company also generated a GAAP operating margin of 47%, while adjusted free cash flow reached $1.22 billion, representing a margin of 63%. Net dollar retention increased to 157% from 150% sequentially, indicating that existing customers are significantly expanding their use of Palantir products.
U.S. commercial customer count rose 35% year over year to 653. The contrast between customer growth and revenue expansion is particularly noteworthy. Palantir is generating substantially more revenue from existing customers as organizations broaden deployments after initial adoption.
This dynamic supports the argument that Palantir’s platforms become more valuable as customers build additional applications on top of their established digital infrastructure.
Improving Deployment Efficiency Could Unlock More Growth
Another potential catalyst lies in Palantir’s deployment model. Historically, the company has relied heavily on highly skilled engineers to work closely with customers during implementation. That approach can accelerate value creation but may also limit how quickly Palantir can onboard new customers.
Greater automation and self-service capabilities could therefore represent an important next phase of growth. If PLTR can reduce the level of manual engineering required for new deployments while maintaining implementation quality, it could accelerate customer additions without needing a comparable expansion in sales or technical headcount.
Such operating leverage would further strengthen an already attractive business model.
Government Platform Adoption Adds Strategic Value
Palantir’s government business provides another source of long-term strength. Its Maven-related platform activity illustrates how deeply the company can become embedded within large operational programs.
More than 25,000 developers and participants have reportedly been building applications and AI agents around the platform. Although this should not be interpreted as paid-user data, the level of participation suggests that Palantir technology can become an operating environment on which additional tools and workflows are created.
That type of ecosystem can reinforce customer dependence on the underlying platform and expand its strategic importance over time.
Analyst Sentiment Remains Highly Favorable
Consensus estimates continue to support Palantir’s growth trajectory. Earnings are projected to increase 114.7% in 2026 and 40% in 2027, while revenue growth expectations remain robust at 83% in 2026 and 42.5% in 2027.
Analyst sentiment has also improved considerably. Over the past 60 days, analysts issued 10 upward earnings estimate revisions for 2026 and none downward. Forecasts for 2027 also moved higher, with 10 upward revisions and none downward, reflecting growing confidence in Palantir’s execution capabilities and expanding AI opportunity.
Valuation and Accounting Risks Should Not Be Ignored
Palantir’s rapid appreciation means investors are paying heavily for future growth. A forward EV/EBITDA multiple around 66 times reflects expectations for sustained exceptional revenue growth, margin expansion and cash generation.
Stock-based compensation also remains meaningful. It totaled about $265 million in the latest quarter, equivalent to nearly 14% of revenues, creating ongoing dilution concerns.
Investors should also be cautious about extrapolating current net profitability. Palantir’s unusually low effective tax rate contributed to reported earnings strength and may not represent a normalized long-term tax profile.
How Do Palantir’s Peers Stack Up?
Microsoft MSFT remains one of the most important comparisons because of its expanding enterprise AI ecosystem and deep integration of AI tools into corporate software environments. Microsoft benefits from enormous distribution through Azure and its productivity applications. Still, Palantir differentiates itself by focusing heavily on linking AI directly with operational data and workflows. Microsoft remains a formidable competitor, but Palantir’s specialized architecture could sustain demand in complex deployments where governance, integration and execution are critical.
Oracle ORCL is another relevant enterprise technology peer due to its extensive database, cloud infrastructure and business-application footprint. Oracle continues to expand its AI capabilities across enterprise systems, giving customers another pathway for integrating AI with critical corporate data. However, Palantir’s emphasis on building operational digital environments across disparate systems provides a different value proposition. Oracle has considerable scale, while Palantir is increasingly positioning itself as a specialized operating layer for AI-enabled decision-making.
Why PLTR Looks Like a Buy
Palantir’s investment case rests on more than rapid AI-related revenue growth. The company is becoming deeply embedded within critical customer operations, while expanding deployments suggest rising platform value after initial adoption. Its ability to connect artificial intelligence with governed enterprise workflows creates meaningful differentiation and potentially high switching costs. Improving deployment efficiency could broaden customer adoption, while government and commercial momentum provide multiple growth avenues. Valuation remains demanding and shareholder dilution deserves attention, but Palantir’s expanding strategic importance, exceptional operating leverage and strengthening customer economics support continued upside. For investors comfortable with premium valuations, PLTR remains a Buy.
PLTR stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Palantir Stock Surges 42% in 3 Months: Is PLTR Worth Buying?

Key Points
Oracle’s cloud infrastructure revenue jumped 121% in its latest quarter.
Its $664 billion backlog points to demand, but building the cloud computing capacity to serve it is costly.
Oracle's debt, lease commitments, and negative free cash flow make the stock too risky for me.
$800 billion.
That's how much just five technology megacaps are expected to spend in capital expenditures this year alone, with the vast majority earmarked for artificial intelligence (AI) projects. It turns out building AI data centers is fabulously expensive.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Four of those companies -- hyperscalers Microsoft, Amazon, Alphabet, and Meta Platforms -- are trading at less than 15% off their all-time highs.
One is not: Oracle (NYSE: ORCL). That tech giant's stock is now down nearly 60% from the record it set in September 2025. So, is this the perfect time to buy? Or is there a reason Oracle stock is the odd one out?
Oracle's growth isn't the problem
Let's be clear, Oracle stock has not tumbled because of slow business growth. The company's revenue has grown from $42.4 billion in its fiscal 2022 to $67.4 billion in fiscal 2026. Investors can thank its AI efforts for that. Check out the acceleration on its top line.
A more granular look at its revenue by segment shows how much of this growth was fueled by AI, and specifically, the AI data center boom. Sales from Oracle Cloud Infrastructure (OCI) arm -- the unit that leases massive data centers and rents out AI compute -- jumped 121% to $7.4 billion in its most recently reported quarter, fiscal 2027 Q1. That unit brought in less than $1 billion in the same period of fiscal 2023.
Behind the strength of OCI, Oracle's companywide remaining performance obligation (RPO) -- contracted revenue for products and services it hasn't delivered yet -- reached an incredible $664 billion as of the end of last quarter.
The cost of growth
Growth is not the issue. Well, at least not that kind of growth. The issue is the costs that are ballooning alongside that sales growth, namely, capex. Oracle's share of that $800 billion figure is $95 billion. While that may be the lowest of the bunch, keep in mind that Oracle makes about a third of Meta's revenue, the next smallest in that group.
Oracle's spending spree is far outpacing its ability to pay for it with the cash the business actually generates. Oracle's free cash flow (FCF) -- the money left over after running the business and paying for capital projects -- was negative $5.4 billion in the latest quarter.
Currently, for every $1 Oracle is spending in capex, its business is only generating 60 cents. Until recently, that figure hadn't really been under $5 for more than 20 years. Take a look at the chart showing that relationship and the steep decline in the last few years.
Funding the gap with debt
Since it doesn't have nearly enough cash flowing from its operations to cover its capital spending needs, Oracle has turned to debt, and a lot of it. As of the end of August, the company had $125 billion in long-term debt on its books. (It has also been engaging in dilutive secondary stock sales.)
And that debt figure doesn't reflect the $288 billion in data-center lease commitments that Oracle hasn't begun paying, and that don't show up on the balance sheet. There's also project-level financing that, although Oracle itself is not responsible for it, adds to the total leverage involved in its bet-the-farm AI build-out.
A data center delay shows the risk
That is especially relevant right now. Recently, the company was in the news for sending a legal notice to the developer of Project Jupiter, a massive data center campus, claiming "force majeure" in a bid to postpone when it starts making lease payments if the facility isn't ready and powered up by the project's March 2028 target date.
Simply, Oracle is attempting to legally shield itself from having to pay the rents it agreed to if Project Jupiter is delayed due to events outside of its control.
If the project's completion is delayed, and Oracle's legal maneuver falls flat, it could be stuck paying those rents without the income that is supposed to fund them. That would not be good for its cash flow picture.
Is Oracle stock worth the risk?
These aren't issues facing Oracle alone. The other tech giants have seen their own free cash flows plummet and have, to various degrees, begun borrowing. The main difference is in relative scale.
Oracle's financial picture is much more precarious than the other four hyperscalers, and if the AI boom slows down -- or worse -- the consequences it faces will be much more severe.
Now, if everything goes according to plan, that could mean there is more upside for Oracle stock. I still don't think it's worth the risk.
Should you buy stock in Oracle right now?
Before you buy stock in Oracle, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oracle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,396,103!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 30, 2026.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Oracle. The Motley Fool has a disclosure policy.

Oracle Corporation

Options Strategies