The fastest path to long-term wealth is accumulating great companies when the market gives you a discount. $Oracle(ORCL)$ is a $260 stock trading at $120. $Rocket Lab USA, Inc.(RKLB)$ is a $120 stock trading at $67. $Atlassian Corporation PLC(TEAM)$ is a $180 stock trading at $81. $Netflix(NFLX)$ is a $100 stock trading at $68. Great businesses at attractive prices are where patience can pay off. I'm looking to focus on names that are setting up in strong groups.
$Oracle(ORCL)$ The $Alphabet(GOOGL)$ earnings are a solid, indisputable proof that the cloud computing business is absolutely booming. Oracle is the leader in the data center cloud computing business.
$Gorilla Technology(GRRR)$ $Oracle(ORCL)$ Over the past five years, Google has consistently been one of the top three most successful companies. They're investing in AI infrastructure capex as aggressively as possible and have stated they want to do even more. So, either Google has suddenly lost its mind, or Oracle and others are making the right moves. The recent sell-off in Oracle seems completely overdone.
$Oracle(ORCL)$ It's generally not a great idea to bet against the company that pioneered the entire industry. No risk means no reward, and Larry seems to understand that principle very well.
$Oracle(ORCL)$ One thing I've noticed in the market is the recognition for quality and oversold companies. Regardless of the day's broader moves, if something is seen as quality and oversold, it tends to attract buyers. I'm not completely certain about where ORCL stands on that scale, but from where I stand, it feels more like it fits the "quality and oversold" category.
$Oracle(ORCL)$ A lot of the short sellers getting too greedy might end up pushing this back up, in my view. I'm still looking to add more at $118 if it reaches that level. It seems like institutions can't really build a large position without shaking out the leveraged traders and the less committed retail holders.
$Oracle(ORCL)$ This selloff has likely priced in most of the AI bubble and debt concerns. I think the downside is limited now, and I'm still confident ORCL can finish above $250 this year. Before the AI boom started to take off in 2024, Oracle was trading around $125–130. The recent price action has essentially reset the stock to its mid-2024 levels, as if none of the subsequent developments occurred. Revenue has nearly doubled. Cloud revenue has seen strong growth for multiple quarters. AI demand has exploded. There's a $638B backlog from AI customers, including OpenAI. Some AI infrastructure is already built and ready to convert into revenue. The market seems to be pricing Oracle as if none of this exists, which is why it looks extremely un