Opinions
Jim Cramer - Mad Money
Oracle
ORCL-N
DON'T BUY
Sep 29, 2025
Stock price when the opinion was issued
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Went into yesterday with a 6% position in his fund, now just above 8%. Probably won't trim until it gets between 9-10%. Backlog was 360% more than what was expected.
Views it same way as IBM. Both are legacy technology stocks. But then the light went on and they got into the cloud and data centres.
Premium contentOracle reported a revenue of 14.9B, which is a -6.1% change from the previous quarter. An increase in revenue typically indicates growing demand for the company's products or services. A decline in revenue can be concerning, as it might indicate reduced sales or challenges in the market. It's important to investigate further to understand the underlying causes. Social media mentions are up 217.5% in the past 24h.
Ironic that recent revenue and earnings missed, but it sees cloud infrastructure segment swelling from $10.3B in 2025 to $144B by 2030. Big winner of AI boom. Could be involved in TikTok ownership. Despite all the talk of capex, looks rather asset-light to him.
Huge run, but he's still modelling 28% EPS growth from 2026-2029. Trades at 38x for 2027 and 27x for 2028, kind of an expensive PEG, but not bad. Don't buy at the top, accumulate on pullbacks.
Their massive data centre build has an element of the 2000 dotcom building that he wishes wasn't there. If OpenAI were to go public and raise billions and has a clean balance sheet, maybe he wouldn't be concerned. But he is.