Are you buying Oracle stock’s decline after record fourth-quarter results?

Oracle ORCL) delivered record results for its fiscal fourth quarter last night, driven by increasing demand for its cloud infrastructure services and artificial intelligence-related offerings.

However, the market’s attention has shifted to the huge costs Oracle is incurring in achieving its AI growth ambitions, causing shares to fall more than 10% in Thursday morning’s trading session.

However, let’s take a closer look at Oracle’s latest earnings, growth outlook, and valuation to determine whether investors should buy ORCL on a decline.

Image source: Zacks Investment Research

Oracle’s record fourth quarter results

Oracle reported record fourth-quarter revenue of $19.18 billion, beating Wall Street expectations of around $19 billion. The company rose 20% from $15.9 billion in the year-ago quarter.

Cloud services remained a key growth driver as enterprises shifted their workloads to Oracle Cloud Infrastructure (OCI), which saw a 93% increase.