Oracle Corporation Faces Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Should l Buy ORCL?
Source: Globenewswire
- Class Action Notification: Rosen Law Firm alerts purchasers of Oracle Corporation (NYSE: ORCL) senior notes about a class action lawsuit due to false or misleading statements in the Offering Documents filed on March 15, 2024, potentially leading to investor losses.
- Compensation Opportunity: Investors joining the class action may receive compensation without any out-of-pocket costs through a contingency fee arrangement, significantly reducing their financial risk in pursuing claims.
- Debt Risk Disclosure: The lawsuit claims Oracle failed to disclose its need for substantial additional debt to build AI infrastructure at the time of the Offering, which could jeopardize the creditworthiness of the bonds and result in investor damages when the truth emerged.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first for the number of securities class action settlements in 2017, underscoring its expertise and success in this legal domain.
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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: 146.670
Low
180.00
Averages
309.59
High
400.00
Current: 146.670
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.
Oracle Options Trading Analysis and Yield Expectations
- Put Option Appeal: The current bid for the $135.00 put option is $10.80, and if an investor sells this option, they commit to buying the stock at $135.00, resulting in a cost basis of $124.20, which is approximately a 4% discount to the current price of $140.08, making it attractive for those interested in ORCL shares.
- Yield Potential Analysis: Should the put option expire worthless, the investor could realize an 8% return on their cash commitment, equating to an annualized yield of 58.45%, highlighting the strategy's potential appeal in the current market environment.
- Call Option Returns: The $160.00 call option has a current bid of $7.50, and if an investor buys ORCL shares at $140.08 and sells this call option, they could achieve a total return of 19.57% if the stock is called away at expiration, showcasing the potential profitability of this strategy.
- Risk Assessment: Current data indicates that the $135.00 put option and the $160.00 call option have expiration probabilities of 62% and 63% respectively, necessitating careful risk and reward evaluation by investors to ensure sound investment decisions.
See More
Alphabet's CapEx Surge Boosts Broadcom Stock
- CapEx Outlook Boost: Alphabet Inc. raised its 2026 capital expenditure forecast to $175 billion to $185 billion, significantly above the $115 billion expected, indicating strong demand for AI infrastructure, which led to Broadcom's stock rising 3.32% to $318.27.
- Growing AI Hardware Demand: As Alphabet increases investments in data centers and cloud infrastructure, Broadcom's role in designing and producing TPUs becomes increasingly vital, likely enhancing the company's market share in the custom AI chip sector.
- Market Optimism: Ben Reitzes from Melius Research noted that Alphabet's capital spending will serve as a positive catalyst for Broadcom and other related companies, reflecting strong market confidence in rising AI and networking demand, potentially driving Broadcom's performance growth.
- Analyst Ratings Remain Bullish: Jefferies reiterated its Buy rating on Broadcom with a price target of $500, emphasizing the company's strong positioning to benefit from AI and networking demand, indicating significant growth potential ahead.
See More
Oracle Corporation Faces Class Action Lawsuit
- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against Oracle Corporation and certain officers, seeking damages for investors who purchased Oracle securities between June 12, 2025, and December 16, 2025, highlighting significant investor concerns regarding financial transparency.
- Allegations: The lawsuit alleges that Oracle failed to disclose that its AI infrastructure strategy would lead to massive increases in capital expenditures without corresponding near-term revenue growth, which could severely impact the company's financial health and investor confidence.
- Financial Risks: It also points out that the increased spending has created serious risks related to Oracle's debt, credit rating, and free cash flow, potentially affecting the company's ability to fund its projects and exacerbating market concerns about its future prospects.
- Investor Action: Investors are encouraged to apply to be lead plaintiffs by April 6, 2026, to share in any potential recovery from the lawsuit, indicating a proactive stance by investors in protecting their rights.
See More
Big Tech CEOs Address AI Threats to Software Firms
- Market Sentiment Recovery: Despite enterprise software stocks like Palantir and Oracle dropping about 12% this week, Nvidia CEO Jensen Huang stated at the Cisco AI Summit that AI will not replace the tool industry but enhance its competitiveness, indicating a potential recovery in market confidence.
- AI-Driven Revenue Growth: Google Cloud's revenue surged 48% year-over-year to $17.7 billion, with CEO Sundar Pichai emphasizing that AI is deeply integrated into customers' critical workflows, showcasing the adaptability and growth potential of software companies in the AI era.
- Emerging Competitor Threats: Investors are concerned that SaaS companies may face competition from emerging AI platforms like Aurasell and Artisan AI, which could undermine the market positions of established firms, increasing uncertainty in the industry.
- Industry Defense Strategies: ServiceNow CEO William McDermott asserted that AI will not replace core enterprise software functions but rather depend on its architecture, indicating that traditional software companies still hold significant strategic positions amid the AI wave.
See More
Latest Wall Street Rating Updates
- Goldman Sachs Reiterates Nvidia: Goldman Sachs maintains a Buy rating on Nvidia ahead of its earnings report, expecting investors to focus on visibility into 2027, non-traditional customer demand, and trends in the Chinese market, indicating strong market confidence in Nvidia's future growth.
- Benchmark Initiates Cava Rating: Benchmark initiates coverage of CAVA Group with a Buy rating and an $80 price target, reflecting its leadership position in the rapidly emerging Mediterranean dining market, which is expected to attract more investor interest in this burgeoning sector.
- BMO Capital Upgrades Brookfield: BMO upgrades Brookfield Asset Management from Market Perform to Outperform, citing attractive mid-teens distributable earnings growth prospects underpinned by continued fundraising momentum and fee rate resilience, showcasing the company's robust financial health.
- Bank of America Downgrades Qualcomm: Bank of America downgrades Qualcomm from Buy to Neutral, lowering the price target from $215 to $155 due to concerns over cyclical and structural weaknesses in the handset market, which may adversely affect its future performance.
See More
Analysis of the Tech Sell-Off Reasons
- Nasdaq Decline: The Nasdaq index fell 1.5% yesterday amid growing fears of AI disruption, with SaaS stocks particularly hard hit, as the S&P 500 software and services index has dropped nearly 13% over the past six sessions, indicating a waning confidence in the tech sector.
- Earnings Impact on GOOG and QCOM: Alphabet's stock fell as much as 7% after hours but recovered slightly before market open, with 2026 capex expected to be double last year's $91 billion, reflecting an aggressive investment strategy that may impact short-term stock performance; Qualcomm dropped nearly 10% pre-market due to CEO warnings about memory supply and pricing constraints.
- Quantum Stocks Hit Hard: IonQ's stock fell 8.14% yesterday following a short-seller report claiming most of its revenue comes from acquired non-quantum computing businesses, raising doubts about the commercial viability of the quantum sector, with competitors D-Wave Quantum and Rigetti Computing also closing over 5% lower.
- Amazon's Strong Performance: Amazon has outperformed the S&P 500 by 69% since January 2023, and despite concerns over holiday season performance and cloud growth, its strong quarterly results demonstrate resilience in the market, with investors looking forward to future strategic updates.
See More
Oracle Options Trading Analysis and Yield Expectations
- Put Option Appeal: The current bid for the $135.00 put option is $10.80, and if an investor sells this option, they commit to buying the stock at $135.00, resulting in a cost basis of $124.20, which is approximately a 4% discount to the current price of $140.08, making it attractive for those interested in ORCL shares.
- Yield Potential Analysis: Should the put option expire worthless, the investor could realize an 8% return on their cash commitment, equating to an annualized yield of 58.45%, highlighting the strategy's potential appeal in the current market environment.
- Call Option Returns: The $160.00 call option has a current bid of $7.50, and if an investor buys ORCL shares at $140.08 and sells this call option, they could achieve a total return of 19.57% if the stock is called away at expiration, showcasing the potential profitability of this strategy.
- Risk Assessment: Current data indicates that the $135.00 put option and the $160.00 call option have expiration probabilities of 62% and 63% respectively, necessitating careful risk and reward evaluation by investors to ensure sound investment decisions.
See More
Alphabet's CapEx Surge Boosts Broadcom Stock
- CapEx Outlook Boost: Alphabet Inc. raised its 2026 capital expenditure forecast to $175 billion to $185 billion, significantly above the $115 billion expected, indicating strong demand for AI infrastructure, which led to Broadcom's stock rising 3.32% to $318.27.
- Growing AI Hardware Demand: As Alphabet increases investments in data centers and cloud infrastructure, Broadcom's role in designing and producing TPUs becomes increasingly vital, likely enhancing the company's market share in the custom AI chip sector.
- Market Optimism: Ben Reitzes from Melius Research noted that Alphabet's capital spending will serve as a positive catalyst for Broadcom and other related companies, reflecting strong market confidence in rising AI and networking demand, potentially driving Broadcom's performance growth.
- Analyst Ratings Remain Bullish: Jefferies reiterated its Buy rating on Broadcom with a price target of $500, emphasizing the company's strong positioning to benefit from AI and networking demand, indicating significant growth potential ahead.
See More
Oracle Corporation Faces Class Action Lawsuit
- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against Oracle Corporation and certain officers, seeking damages for investors who purchased Oracle securities between June 12, 2025, and December 16, 2025, highlighting significant investor concerns regarding financial transparency.
- Allegations: The lawsuit alleges that Oracle failed to disclose that its AI infrastructure strategy would lead to massive increases in capital expenditures without corresponding near-term revenue growth, which could severely impact the company's financial health and investor confidence.
- Financial Risks: It also points out that the increased spending has created serious risks related to Oracle's debt, credit rating, and free cash flow, potentially affecting the company's ability to fund its projects and exacerbating market concerns about its future prospects.
- Investor Action: Investors are encouraged to apply to be lead plaintiffs by April 6, 2026, to share in any potential recovery from the lawsuit, indicating a proactive stance by investors in protecting their rights.
See More
Big Tech CEOs Address AI Threats to Software Firms
- Market Sentiment Recovery: Despite enterprise software stocks like Palantir and Oracle dropping about 12% this week, Nvidia CEO Jensen Huang stated at the Cisco AI Summit that AI will not replace the tool industry but enhance its competitiveness, indicating a potential recovery in market confidence.
- AI-Driven Revenue Growth: Google Cloud's revenue surged 48% year-over-year to $17.7 billion, with CEO Sundar Pichai emphasizing that AI is deeply integrated into customers' critical workflows, showcasing the adaptability and growth potential of software companies in the AI era.
- Emerging Competitor Threats: Investors are concerned that SaaS companies may face competition from emerging AI platforms like Aurasell and Artisan AI, which could undermine the market positions of established firms, increasing uncertainty in the industry.
- Industry Defense Strategies: ServiceNow CEO William McDermott asserted that AI will not replace core enterprise software functions but rather depend on its architecture, indicating that traditional software companies still hold significant strategic positions amid the AI wave.
See More
Latest Wall Street Rating Updates
- Goldman Sachs Reiterates Nvidia: Goldman Sachs maintains a Buy rating on Nvidia ahead of its earnings report, expecting investors to focus on visibility into 2027, non-traditional customer demand, and trends in the Chinese market, indicating strong market confidence in Nvidia's future growth.
- Benchmark Initiates Cava Rating: Benchmark initiates coverage of CAVA Group with a Buy rating and an $80 price target, reflecting its leadership position in the rapidly emerging Mediterranean dining market, which is expected to attract more investor interest in this burgeoning sector.
- BMO Capital Upgrades Brookfield: BMO upgrades Brookfield Asset Management from Market Perform to Outperform, citing attractive mid-teens distributable earnings growth prospects underpinned by continued fundraising momentum and fee rate resilience, showcasing the company's robust financial health.
- Bank of America Downgrades Qualcomm: Bank of America downgrades Qualcomm from Buy to Neutral, lowering the price target from $215 to $155 due to concerns over cyclical and structural weaknesses in the handset market, which may adversely affect its future performance.
See More
Analysis of the Tech Sell-Off Reasons
- Nasdaq Decline: The Nasdaq index fell 1.5% yesterday amid growing fears of AI disruption, with SaaS stocks particularly hard hit, as the S&P 500 software and services index has dropped nearly 13% over the past six sessions, indicating a waning confidence in the tech sector.
- Earnings Impact on GOOG and QCOM: Alphabet's stock fell as much as 7% after hours but recovered slightly before market open, with 2026 capex expected to be double last year's $91 billion, reflecting an aggressive investment strategy that may impact short-term stock performance; Qualcomm dropped nearly 10% pre-market due to CEO warnings about memory supply and pricing constraints.
- Quantum Stocks Hit Hard: IonQ's stock fell 8.14% yesterday following a short-seller report claiming most of its revenue comes from acquired non-quantum computing businesses, raising doubts about the commercial viability of the quantum sector, with competitors D-Wave Quantum and Rigetti Computing also closing over 5% lower.
- Amazon's Strong Performance: Amazon has outperformed the S&P 500 by 69% since January 2023, and despite concerns over holiday season performance and cloud growth, its strong quarterly results demonstrate resilience in the market, with investors looking forward to future strategic updates.
See More
