Short sellers are betting on Oracle shares. Should you also bet against ORCL?

The software bust that began last week became a bonanza for short sellers who had bet against the tech frontrunners. Data from S3 Partners shows bears have reaped around $24 billion in year-to-date (YTD) paper profits as software stocks tumbled on high valuations. While the sector has lost $1 trillion in market value, Short sellers laughing all the way to the bank.

oracle (ORCL) is the poster child of this reversal, down about 54% from its September peak of $345.72. With this decline in mind, let’s take a closer look.

Oracle stock is in free fall

Over the past three months, ORCL stock has fallen about 30%, marking one of the worst quarters since the dot-com bubble.

Oracle reported a weaker than expected fiscal year…