By Daniel Foelber
Publication Date: 2025-12-16 01:00:00
Oracle could fall even further, but the growth potential cannot be overlooked.
oracle (ORCL 2.66%) The stock fell as much as 16.5% on December 11 in response to the company’s second quarter fiscal 2026 results.
At the time of writing, Oracle is now about 42% below its 52-week high, reached just three months ago.
Here’s why Oracle’s selloff has gone too far and why Oracle stands out as a frontrunner Artificial intelligence (AI) growth stock. buy and keep.
Image source: Getty Images.
Oracle is aiming for the fences
Leverage is a double-edged sword. It magnifies gains upward and amplifies losses. Debt allows companies to finance ideas that would not be possible with their own revenue. Oracle does exactly that.
Oracle ended its most recent quarter with over $80 billion in long-term notes and other borrowings, net of cash and cash equivalents. This is basically long-term debt minus cash.
In comparison, others like cloud giants and chipmakers Amazon, Microsoft,…