Is Oracle Stock a Buy, Sell or Hold at a P/S Multiple of 8.61X?
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Oracle's stock is currently trading at a price-to-sales (P/S) multiple of 8.61X, which is considered high. The company's outlook is negatively impacted by slowing cloud growth and significant capital expenditure plans.
November 27, 2024 | 5:00 pm
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Oracle's stock is trading at a high P/S multiple of 8.61X. The company's future outlook is challenged by slowing growth in its cloud segment and substantial capital expenditure plans.
The high P/S multiple suggests that Oracle's stock may be overvalued, especially given the slowing growth in its cloud business, which is a key driver of future revenue. Additionally, heavy capital expenditure plans could strain financial resources, further impacting the stock negatively in the short term.
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