ORCL Eyes 52-Week Low After Sharp Slide: Retail Traders Say Stock Is 'Ridiculously Undervalued'

• ORCL dropped 0.2% in Monday’s premarket session.
• ORCL’s sharp pullback in the past month is fueling optimism ahead of the second-quarter earnings season, which begins this week.
• Stocktwits sentiment for ORCL rose in July and was ‘bullish’ on Monday.

Oracle stock dipped slightly in early premarket trading on Monday, extending its recent slide and moving closer to a key support level that has kept the stock afloat so far this year.

Still, the pullback is fueling optimism among retail traders ahead of the second-quarter earnings season, which begins this week.

“$SPY $MSFT $IBM $ORCL held up very well overnight so far compared to semis,” said a trader, referring to the late Sunday market selloff, triggered by fresh U.S. strikes on Iran in retaliation for Tehran’s attack on a container ship in the Strait of Hormuz, putting the fragile peace deal at risk.

Another trader wrote: “From a risk standpoint, this is a stock that has certainly fallen out of favor with investors, but should this support hold, could lead to a nice squeeze higher. High risk trade though as the volatility has been extreme with this stock and has a beta over 2.2.”

ORCL Retail, Analyst View 

Oracle stock has slid 43% lower from its recent high on June 1 to $140.64 as of the last close. It is fast approaching $134, which has served as a key support level in the last several months. If ORCL falls below that, it would be the stock’s lowest level since April 2025.

On Stocktwits, the retail sentiment jumped over July and was ‘bullish’ on Monday. “$ORCL any hint of positive anything this goes to the moon over $200 easy gold gold gold,” a user said.

Currently, 37 of 43 analysts rate the stock ‘Buy’ or higher, 5 rate it ‘Hold,’ and 1 rate it ‘Sell,’ per Koyfin. Their average price target of $281.85 implies a 75% upside from the stock’s last close.

Oracle’s Debt Woes 

Oracle’s woes stem from its high debt and the concentration of future business with a handful of customers, chiefly OpenAI.

Investors see Oracle in a risky position, especially since OpenAI has fallen behind rival Anthropic in market value and, reportedly, in annualized revenue as well.

Last month, Oracle reported fourth-quarter results that beat expectations and said backlog surged 363% to a record $638 billion. But it also forecasts up to $95 billion in capital expenditure for fiscal 2027, following $55.7 billion in spending last fiscal.

To achieve that, Oracle would raise $40 billion in debt and equity this fiscal year, including $20 billion through a previously announced program to sell shares in the open market. In the fiscal year just ended, Oracle raised $43 billion in debt financing and $5 billion in equity.

ORCL stock is down 28% year to date.

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