Why Oracle Stock Slipped 35% in June

Shares of (NYSE: ORCL) sank 35% in June, according to data from S&P Global Market Intelligence. After rebounding in May, the database and software provider turned artificial intelligence (AI) cloud solution reported earnings in June that disappointed investors.

Oracle is now down 56% from its highs and trades at a below-market price-to-earnings ratio (P/E). Here's why the stock was falling in June, and whether it is a buy today.

In the last few years, Oracle has pivoted its business from selling just database solutions and other software to becoming a fully cloud infrastructure company, spending billions on data centers to do so. With major partnerships from the likes of OpenAI and other AI players, Oracle now has remaining performance obligations (RPO) of $638 billion, up $85 billion from last quarter.

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Source Fool.com