European Investor
11 Jun 2026, 16:54
Oracle Slides 12% Despite Broad Wall Street Support as Analysts Trim Targets After Earnings
Oracle (NYSE: ORCL) shares fell roughly 12% on Thursday following its earnings report, even as most Wall Street firms maintained bullish ratings and continued to view the company as a major beneficiary of the artificial intelligence infrastructure boom.
The sharp decline appears to be driven less by analyst sentiment and more by investor disappointment relative to elevated expectations after Oracle's strong rally since February. However, today's analyst reactions suggest that Wall Street remains largely constructive on the company's long-term outlook.
Wedbush's Daniel Ives lowered his price target from $275 to $240 while maintaining an Outperform rating, reflecting a more conservative valuation despite continued confidence in Oracle's AI and cloud growth strategy. Scotiabank also reduced its target from $290 to $241 but kept its Sector Outperform rating.
Importantly, the target reductions were not accompanied by rating downgrades. Several major firms reiterated bullish views, including Wolfe Research (Outperform), Citigroup (Market Outperform), and Scotiabank (Sector Outperform). Sanford C. Bernstein established a notably optimistic $325 price target, implying substantial upside from current levels.
The analyst responses suggest that while expectations have been reset following the earnings release, Wall Street still sees Oracle as one of the key infrastructure providers benefiting from the massive wave of AI-related spending. Investors remain focused on the company's cloud business, AI training workloads, and expanding data center footprint, which have become major drivers of future growth expectations.
The stock's decline therefore appears to reflect a valuation adjustment rather than a fundamental shift in analyst opinion. With most firms maintaining positive ratings and price targets that remain well above current trading levels, today's selloff highlights the market's tendency to punish even strong companies when results fail to exceed increasingly ambitious expectations.
Oracle (NYSE: ORCL) shares fell roughly 12% on Thursday following its earnings report, even as most Wall Street firms maintained bullish ratings and continued to view the company as a major beneficiary of the artificial intelligence infrastructure boom.
The sharp decline appears to be driven less by analyst sentiment and more by investor disappointment relative to elevated expectations after Oracle's strong rally since February. However, today's analyst reactions suggest that Wall Street remains largely constructive on the company's long-term outlook.
Wedbush's Daniel Ives lowered his price target from $275 to $240 while maintaining an Outperform rating, reflecting a more conservative valuation despite continued confidence in Oracle's AI and cloud growth strategy. Scotiabank also reduced its target from $290 to $241 but kept its Sector Outperform rating.
Importantly, the target reductions were not accompanied by rating downgrades. Several major firms reiterated bullish views, including Wolfe Research (Outperform), Citigroup (Market Outperform), and Scotiabank (Sector Outperform). Sanford C. Bernstein established a notably optimistic $325 price target, implying substantial upside from current levels.
The analyst responses suggest that while expectations have been reset following the earnings release, Wall Street still sees Oracle as one of the key infrastructure providers benefiting from the massive wave of AI-related spending. Investors remain focused on the company's cloud business, AI training workloads, and expanding data center footprint, which have become major drivers of future growth expectations.
The stock's decline therefore appears to reflect a valuation adjustment rather than a fundamental shift in analyst opinion. With most firms maintaining positive ratings and price targets that remain well above current trading levels, today's selloff highlights the market's tendency to punish even strong companies when results fail to exceed increasingly ambitious expectations.