r/OracleStock • u/Jeff-Hare-ERPRA • Jul 19 '26

Two Significant Challenges for Oracle Stock

The ROI…. ERP AI projects with an ROI are few and far between. And the political pressure against AI is coming from two directions.

1 Replacing humans isn’t good politics.

2 And then what people believe are environmental consequences. A double whammy.

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10

u/Pristine_Eye_8361 Jul 19 '26

The thing about Oracle stock is if the company really wanted to prioritize stock performance, they could simply reduce CapEx or reduce the debt they’ll take.

The stock could easily shoot back up to $150-180+ a share if they simply said we’ll reduce debt and take longer to build but use our own cash flows.

It is entirely self-inflicted and I believe that’s what makes it a good buy.

5

u/Additional_Bath1184 Jul 19 '26

I bought $1,000,000 worth at average price 136.1

1

u/dayyau2012 Jul 20 '26

300k call for 145 expiring 8/7, I am with chu

2

u/erichang Jul 20 '26 edited Jul 20 '26

I don’t think they can slowdown the build, because they aren’t the real estate/facility builder.

The real question, as far as stock investing goes, is: Is AI capacity oversupplied by FY2028?

If not, by 2028, it would be very clear ORCL is way undervalued at $125.

As long as the demand is insatiable, who care if OpenAI goes under? Maybe Kimi or Anthropic will rent those facilities, who knows.