Oracle stock falls despite continued strong backlog growth. Should investors buy the stock in a downturn? | The colorful fool

oracle (ORCL 0.05%) has emerged as one of the biggest battleground stocks when it comes to artificial intelligence (AI), and investors have been in a selling mood following the launch of software-as-a-service (SaaS). Cloud computers The provider announced its fourth quarter fiscal 2026 results. Although the stock has been volatile, it is only down about 5% year-over-year and up 5% over the past year.

Let’s take a closer look at Oracle’s results and outlook to see if the recent selloff represents a buying opportunity.

Margins in focus

While Oracle bulls are excited about the company’s huge cloud computing backlog, bears are worried about the spending required to build capacity and the return the company will get on those infrastructure investments. The expansion will also have a negative impact Gross margins initially, as there is a delay from its enormous…