By Ghazal Ahmed
Publication Date: 2025-11-14 12:43:00
Oracle Corporation (NYSE:ORCL) is one of the Trending AI Stocks on Wall Street. On November 10, Erste Group downgraded its stock rating to “Hold” from “Buy,” citing rising liabilities and declining ROA due to heavy cloud investments. The company expects margin and FCF growth to moderate in the future.
While Oracle is expanding its cloud offering with new cloud data centers and achieving significant growth in this area, there is a slight decline in the traditional software business.
According to the company, the high investments are likely to impact the growth of free cash flow and the operating margin is also expected to decline slightly in the next few years due to the high investments.
“The group is expanding its cloud offering with new cloud data centers and is achieving significant growth in this area. In contrast, the classic software business recorded a slight decline. Due to the high investments, long-term liabilities have risen sharply and…
