Oracle Stock Is Down 64% in 10 Months. Is This the Best Buying Opportunity in AI -- or a Falling Knife?

Oracle shares (NYSE: ORCL) have dropped nearly 60% since a September peak, with the stock down about 64% over roughly 10 months despite earnings growth. The price-to-earnings multiple has fallen from 76 at the peak to around 22 today, prompting debate over whether the sell-off is a bargain or a warning sign. The bullish case cites rapid growth: revenue up 21% year over year to $19.2 billion, Oracle Cloud Infrastructure up 93% to $5.8 billion, and remaining performance obligations (RPO) at $638 billion, up 363%. The bear case focuses on balance-sheet risk, with nearly $130 billion in debt versus $43 billion in equity.