Oracle Faces Class Action Lawsuit Over Financial Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy ORCL?
Source: PRnewswire
Oracle Corp's stock price fell by 4.61% as it hit a 20-day low, reflecting ongoing investor concerns.
The decline is primarily attributed to a class action lawsuit filed against Oracle, alleging that the company's AI infrastructure strategy will lead to significant capital expenditures without corresponding revenue growth. This situation raises concerns about Oracle's financial stability and its ability to manage debt, especially after reports of major investor withdrawals and disappointing financial results.
As the lawsuit unfolds, investor confidence may continue to wane, potentially leading to further volatility in Oracle's stock price as the market reacts to the implications of these financial risks.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORCL is 309.59 USD with a low forecast of 180.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 136.480
Low
180.00
Averages
309.59
High
400.00
Current: 136.480
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
