From Nasdaq: 2025-02-26 09:30:00

Oracle’s ORCL stock is overvalued, trading at a high EV/EBITDA multiple of 21.89x, signaling potential downside risk. Despite recent outperformance, the stock’s premium valuation may be unsustainable. Growth in cloud revenues and AI investments are already factored into the price, making it a risky investment in 2025.

SaaS growth is slowing for Oracle, with infrastructure outpacing applications. Revenue estimates for fiscal 2025 show modest growth, while free cash flow faces challenges due to high capital expenditures. Competition in the cloud market poses a threat, making it a good time for investors to consider selling Oracle stock.



Read more at Nasdaq: Is ORCL Stock a Buy, Sell or Hold at an EV/EBITDA Multiple of 21.89X?