By Trefis Team
Publication Date: 2026-06-04 12:53:00
Oracle (ORCL) The stock fell 5.83% yesterday as investors worried about rising AI infrastructure costs and locked in profits, leading to a massive three-day rally that pushed shares to yearly highs. Currently sitting at around $230, is the stock still a smart buy?
Image by JJ from Pixabay
Is the valuation too high compared to the overall market?
Yes, Oracle trades at a clear premium. Looking at the multiples, the price-to-sales ratio is 9.9 versus the S&P 500 average of 3.2. The price-earnings ratio shows a similar picture and is 39.0 compared to the benchmark’s 23.8. (See Oracle valuation metrics). Oracle isn’t the only one facing intense valuation scrutiny. For a closer look at another cloud giant struggling with heightened market expectations, see our analysis The height problem of Amazon shares.
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