Want to Invest Like Michael Burry? 3 Stocks to Sell Now.

Company Overview - Oracle is a global leader in enterprise information technology with a market capitalization of approximately $417.8 billion, known for its Oracle Database and autonomous systems [3] - The company focuses on scalable, secure solutions that support data-driven operations and long-term digital transformation [2] Recent Performance - Oracle's stock peaked at $345.72 on September 10, 2023, after a quarterly report that saw shares soar nearly 36% in a single session [1] - However, since its peak, the stock has declined by 58%, with a 10.8% drop over the past 52 weeks and a 26.36% decline in the last three months [7] Financial Highlights - For fiscal Q2 2026, Oracle reported revenue of $16.06 billion, a 14% year-over-year increase, with cloud revenue climbing 34% to $8 billion [12] - Non-GAAP EPS increased by 54% annually to $2.26, exceeding expectations, while remaining performance obligations (RPO) surged 438% year-over-year to $523 billion [13] - Capital expenditures for Q2 reached approximately $12 billion, contributing to a negative free cash flow of $10 billion for the quarter [14] Debt and Investment - Oracle raised $18 billion in new debt to fund data center construction, pushing total debt above $100 billion [8] - The company is part of the $500 billion Stargate AI project alongside OpenAI and SoftBank, indicating significant investment in infrastructure [8] Future Projections - Management expects fiscal 2026 capital expenditures to reach approximately $50 billion, $15 billion above previous estimates [15] - Cloud revenue growth is projected between 37% and 41% for Q3, with total revenue expected to rise by 16% to 18% [16] - Analysts forecast a 36.6% year-over-year increase in fiscal 2026 EPS to $6.01, followed by a 4.8% rise to $6.30 in fiscal 2027 [16] Analyst Sentiment - Analysts have upgraded Oracle's rating to "Strong Buy," with 31 out of 42 analysts recommending this rating [17] - The consensus price target of $284.02 implies a 91.2% upside potential, with the highest target suggesting a possible 169% increase [18]