Oracle (ORCL 9.60%) stock was falling faster than temperatures across the country this winter. The company's prominent partnership with OpenAI is the main source of stress for many investors. Oracle stock is down nearly 19% to start 2026 as of Feb. 9. Much of the stock's troubles lately stem from perceived overexposure to OpenAI and Oracle's need to raise additional debt.
NYSE: ORCL
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The question for investors is two-fold. First, is the OpenAI worry overblown? There was speculation that OpenAI wouldn't be able to meet its commitments to Oracle. Secondly, how might Oracle's increasing debt load help future long-term revenues? The additional debt is reportedly to build out AI data centers.
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For the bullish, Oracle's drop below $170 presents a great time to buy and hold, as it's likely to be a good investment over the next several years with steady data center demand. Oracle's forward P/E ratio is down to 19, which is below its peers' average.
The good news for Oracle investors is that the stock was recently upgraded by DA Davidson from "neutral" to "buy". The analysts there believe the market's OpenAI partnership worries were blown out of proportion. This is my sentiment as well. It looks like OpenAI will have the money it needs to continue its ambitious projects, and Oracle's revenue from the partnership is less at risk now.
Yes, Oracle is still a buy
Oracle also now owns 15% of TikTok USA, which could lead to significant future revenue. Yes, there's a concentration risk with Oracle, but not enough to scare me away as a long-term investor.
