$ORCL’s sell-off could be a buying opportunity and not because the risks disappeared, but simply because the news sound worse than than the near-term earnings impact they might cause.
At roughly $135, $ORCL trades at:
17.6× adjusted run-rate P/E
16.7× FY2027 P/E
12.3× FY2028 consensus P/E
The New Mexico force majeure notice reportedly seeks payment protection if Project Jupiter is delayed (not an exit). Oracle says the project remains on schedule and previously said it would not affect FY2027 guidance. If this stays an issue related to this project only, easing fears could cause a rebound without any other catalysts.
What I don't like about $ORCL: ~$125B of debt, negative quarterly free cash flow and a recent $20B equity raise.
IMO, a good buy at today's price if you don't mind the debt/risk.