Analyst: Oracle (ORCL) ‘Undercutting Prices’ is ‘Dragging Down’ Cloud Sector Prices – ‘The Market is Becoming Commoditized’

Group 1 - The core viewpoint is that Oracle Corporation (NYSE:ORCL) is currently undercutting prices on enterprise deals, which is impacting the overall pricing dynamics in the cloud sector [1][2]. - Oracle is reportedly reducing prices by 40–70% on many enterprise deals, leading to decreased profitability across the cloud sector, including competitors like AWS [2]. - The market is becoming more commoditized, with decreasing switching costs and less favorable overall economics for cloud providers [2]. Group 2 - ClearBridge Large Cap Growth Strategy has initiated new positions in Oracle, highlighting its successful expansion into cloud infrastructure for generative AI workloads [3]. - Oracle is gaining market share among hyperscalers due to its lower-cost data center architecture, which is advantageous for large-scale AI training workloads [3]. - There is a belief that Oracle's market share will continue to grow over the next few years, although some analysts suggest that other AI stocks may offer higher returns with limited downside risk [3].