Citi Says Buy the Dip in Oracle, Sees Sell-Off as Technical, Not Fundamental

Oracle is down about 23% year to date and roughly 56% below its record high of $345.72, set in September 2025. Citi's Tyler Radke reiterated a Buy rating and $330 price target on Aug. 26, placing the stock on a 90-day positive catalyst watch.
Radke argues the summer collapse, in which Oracle lost more than half its value in 30-40 trading sessions before bottoming at $114.50 in late July, was a "four to five standard deviation move" driven by credit spread widening, aggressive at-the-market share issuance, and forced selling, rather than a broken business. He wants Oracle to confirm its equity issuance program is finished, which he says would remove a major source of selling pressure.
Oracle's fundamentals show a mixed picture: remaining performance obligations backlog hit $638 billion, up 363% year over year, and cloud infrastructure revenue grew 93%, but total liabilities jumped from $147.4 billion to $218.7 billion in a year, free cash flow has turned deeply negative, and one credit rating agency has already downgraded the company. Radke's $330 target sits well above the Wall Street average of $257.79. The company's October investor day and its early-to-mid-September earnings report are seen as key catalysts.