Oracle has improved its business significantly in recent years, with investors optimistic about continued cloud growth. However, the company is facing pressure due to its heavy debt balance. Exceptional returns by Broadcom, Oracle, and Netflix have led to a new class of market-leading growth stocks known as the “Ten Titans,” which make up 38% of the S&P 500. Oracle’s success is attributed to the build-out of Oracle Cloud Infrastructure (OCI), allowing the company to tap into a new revenue stream. The decision to scale OCI has redefined Oracle’s investment thesis, with a focus on competitive pricing and enterprise needs. Key metrics to watch for Oracle include capex and cloud revenue, which made up 42.1% of total revenue in Q4 2025. Analysts are optimistic about Oracle’s future growth, expecting accelerated cloud growth rates in fiscal 2026. The upcoming results will be crucial in supporting Oracle’s ambitious targets. Oracle’s stock is red-hot, but its net long-term debt and capex to revenue are rising. Investors are rewarding Oracle for its aggressive cloud expansion efforts, despite the lack of immediate revenue payoff. Analyst consensus estimates predict strong earnings growth for Oracle in fiscal 2026 and 2027. Oracle’s investment thesis is heavily focused on AI and cloud, making it a high-risk, high-reward play. Investors should have a high risk tolerance and long-term horizon when considering Oracle stock. The Motley Fool Stock Advisor team did not include Oracle in its top 10 stocks to buy now. The team identified other stocks with potential for significant returns in the coming years.

Read more at Yahoo Finance: 3 Reasons Why This “Ten Titans” Growth Stock Has a Lot to Prove on Sept. 9