Why Oracle Remains Attractive Despite Selloff

Oracle’s AI Selloff as a Case Study

At a Glance

Oracle’s recent selloff was driven mainly by higher AI spending and a cloud revenue miss, not a collapse in the business.
We use Oracle as a case study to ask when “buying the dip” can make sense – and when it turns into disguised gambling.
The post explains the real risks of dip-buying, especially for traders used to high-leverage CFDs.
It also covers why some investors still like Oracle: older, cash-generating, dividend-paying with exposure to cloud and AI.
Key idea: the edge isn’t the dip itself – it’s the structure (position sizing, no/low leverage, realistic time horizon).

What Actually Happened With Oracle?

Oracle’s drop didn’t come from a broken business. It came from expectations being reset.

The company announced heavier spending on AI and cloud infrastructure.
Cloud revenue came in below what the market had hoped for.
Investors reacted by marking the price down and questioning whether this level of AI spending will deliver fast enough returns.

In other words, the market repriced the story – it didn’t delete the company.

Insert chart here
[Chart: Oracle daily price – showing the pre-selloff area, the sharp dip after the AI/capex news, and the early recovery attempts.]

The chart helps readers see what we’re talking about: a strong prior up-trend, a sharp reset, and then the early stages of the market reassessing the move.

The Real Risks of “Buying the Dip”

“Buy the dip” sounds simple. The reality is messier.

The main risks:

You might be early. Price can easily fall another 10–20% before it finds a real bottom.
The story can change. If AI spending doesn’t deliver or growth slows, the market might decide the old highs were unjustified.
Sentiment can stay negative for months. Fundamentals can improve while price goes nowhere.
Leverage makes everything worse. On CFDs, normal volatility can trigger margin calls long before any recovery plays out.

Most people don’t blow up because the idea was insane.
They blow up because the structure – leverage, sizing, time horizon – was insane.

Why Some Investors Still Like Oracle

Despite the drawdown, Oracle still ticks several boxes long-term investors look for:

Established, profitable business with decades of operating history.
Sticky enterprise clients who are deeply integrated into Oracle’s ecosystem.
Growing cloud and AI exposure, positioning it for long-term data and infrastructure demand.
Solid cash flow and dividend payments, which can help smooth the ride while waiting for sentiment to improve.

That combination – older, cash-generating, dividend-paying, plus AI exposure – is why many see the selloff as a valuation reset, not the end of the story.

It doesn’t mean “it must go back up.” It means there is a reasonable argument for the price to recover if earnings and cash flow keep developing.

How to Approach Dips Like This Without Blowing Up

If you’re going to step into a dip on a name like Oracle, the process matters more than the prediction.

A few principles:

1. No or Low Leverage

If the only way the trade feels exciting is with 10x leverage, the sizing is wrong.
Owning the underlying stock – or using very modest leverage – gives the position room to breathe.

2. Position Sizing

A single idea should not decide your entire year.
Keep Oracle, or any similar trade, to a sensible percentage of total capital, so a worst-case scenario is uncomfortable, not catastrophic.

3. Time Horizon

AI capex, enterprise contracts, and cloud transitions all play out over quarters and years, not days.

If your mindset is “this has to be green by Friday,” then it’s not really an investment – it’s a short-term trade dressed up as one.

4. Dividends and Compounding

One quiet advantage of established names: you’re paid to wait.
Dividends can be reinvested, adding a small but consistent compounding effect over time.

5. Accept Uncertainty

Even with all of the above, nothing is guaranteed.
Part of the discipline is accepting that:

You might buy early.
The stock might trade lower.
The story might change and you may need to reassess.

Having the option to hold, reduce, or exit from a calm position is only possible if you haven’t over-leveraged yourself.

The Bigger Lesson: It’s Not About the Dip

Oracle is a useful example, but the point is bigger than one ticker.

Buying dips in strong, cash-generating businesses can be a rational strategy.
Buying dips with leverage, oversized positions and unrealistic timelines is usually a slower way of blowing up.

The edge isn’t the magic stock pick or the perfect entry.
The edge is the structure:

Sensible sizing
Limited or no leverage
Clear time horizon
Respect for risk

If you apply that structure, a name like Oracle after a reset can be part of a calmer, more sustainable approach – very different from chasing moves on highly leveraged CFDs.

Where a Prime Broker Fits In – EXANTE

If you prefer to build positions like Oracle through a prime broker rather than high-leverage CFD platforms, one option I use with clients is EXANTE.

Through EXANTE you get:

Multi-asset access to 50+ global markets
Shares, bonds, funds and FX in a single account
Infrastructure built for investors, wealth managers and serious traders

The idea is simple: one regulated, multi-asset account where you can hold names like Oracle alongside the rest of your portfolio, instead of scattering capital across short-term trading apps.

If you’re interested in that route, I explain how I connect clients to EXANTE on my Prime Broker page on kyriwealth.com. This isn’t personal investment advice and, as always, your capital is at risk. I may receive referral fees or rebates from partner platforms, which helps fund ongoing support and transparency.