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

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

By Geoffrey Seiler, The Motley Fool
Publication Date: 2026-06-14 20:20:00

oracle (NYSE: ORCL) 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.

Did you miss Nvidia 2009? This rare signal flashes again. In 2009, a “double down” signal flashed for a little-known chip maker called Nvidia. For the first time in years, the same “Total Conviction” signal is flashing for a company one hundredth the size of Nvidia. Carry on”

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 resulting return on investment…