

Oracle faces strong cloud demand and a $638B backlog, but heavy debt and lease commitments cloud the outlook. I rate ORCL.PR.D a Buy, as its nearly 8% yield and conversion terms offer superior risk-adjusted returns versus common shares in flat or moderately bullish scenarios. ORCL.PR.D provides income and downside protection, outperforming common unless ORCL rises over 42% to $179+ by January 2029.

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ORCL's credit risk hits its highest level in nearly 18 years as AI spending strains cash flow, but a $638B backlog may hold the key to easing investor concerns.

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Investors are worried about Oracle's debt, but the company's long-term prospects could outweigh the near-term risks.

Oracle (ORCL) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

The past few weeks have seen the bond market start asking a question the stock market has mostly been happy to ignore: Who can actually afford the AI buildout?
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