Oracle Shares Down 27% YTD as Scotiabank, UBS Slash Price Targets
Oracle’s shares have fallen 18% over the past year and 27% year-to-date after sector weakness. Scotiabank cut its price target to $220 from $260 and UBS lowered its outlook to $250 from $280, highlighting funding clarity but warning that heavy AI infrastructure capital needs could pressure the balance sheet.
1. Stock Performance Decline
Oracle’s shares have dropped 18% over the past year and 27% year-to-date, underperforming peers amid broader tech sector weakness.
2. Analyst Price Target Reductions
Scotiabank trimmed its price target from $260 to $220 while maintaining a sector outperform rating, and UBS lowered its forecast from $280 to $250 with a buy rating, both citing clearer funding outlooks.
3. Balance Sheet and Capital Requirements
Jim Cramer criticized Oracle’s heavy AI infrastructure capital needs, calling its balance sheet onerous and suggesting that high funding requirements could deter investors seeking lower-risk AI exposure.