Oracle shares have plummeted. Should investors buy the dip in 2026? | The colorful fool

Oracle shares have plummeted. Should investors buy the dip in 2026? | The colorful fool

By Geoffrey Seiler, The Motley Fool
Publication Date: 2025-12-15 12:30:00

The technology company is poised for explosive growth.

oracle (ORCL 4.63%) The stock shot up after the company reported its first-quarter fiscal 2026 report in early September, but it has since given up all of those gains and then some. The latest blow to the stock came when the company reported mixed second-quarter results after the bell on Wednesday.

However, Oracle still has one of the biggest growth opportunities in AI. So, based on the latest results and management’s guidance, should investors buy the stock given this decline as we approach the new year?

From cloud excitement to cloud fear

In September, investors jumped on Oracle stock after the company reported a huge increase in remaining performance obligations (RPOs), a metric that measures the remaining value of its already signed contracts with customers. These are basically non-cancelable contracts Artificial Intelligence (AI) Data centers need to be built, but investors have recently become more nervous about…