Cautious Stance on Oracle Due to Valuation Convergence

5 days ago

Jose

"Now I'm going to talk about Oracle and why this is my third favorite out of the three and why I'm personally not buying much of this one if any. Oracle historically traded at very low valuations, but now, with valuations converging with higher-flying stocks like Microsoft, the mispricing is gone. I still own some Oracle, but it's not the one I'm most excited about. I would only consider a more aggressive buying approach if the stock drops below 260, which would signal a better risk-to-reward scenario."

The speaker explains his cautious outlook on Oracle, noting that although Oracle still has growth opportunities in the AI infrastructure market, its valuation no longer provides the mispricing advantage seen previously. He suggests a very conservative, small dollar cost averaging approach, only considering additional positions if the stock dips below 260.

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