Netflix and Oracle Face Market Pressure Amid Valuation Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy ORCL?
Source: Fool
- Market Capitalization Forecast: Despite predictions that Netflix and Oracle would reach $1 trillion in market capitalization by 2030, Netflix's current market cap stands at $346.9 billion, down 38.6% from its 52-week high, while Oracle's market cap is at $410.4 billion, reflecting a staggering 56.5% decline, indicating vulnerability in both companies' market positions.
- Oracle's Financing Plan: Oracle plans to raise $45 billion to $50 billion by 2026 to support the rapid expansion of its cloud infrastructure, yet it faces significant pressure with $99.98 billion in debt against only $19.24 billion in cash, highlighting its reliance on a limited customer base and capital-intensive spending.
- Netflix Valuation Decline: Netflix's stock has declined due to valuation concerns, currently trading at a forward P/E of 26.3, close to the S&P 500's 23.6, although its high margins and solid growth trajectory make it an attractive investment, supported by strong cash flow for content spending.
- Acquisition Impact Analysis: Netflix's planned acquisition of Warner Bros. Discovery is expected to enhance its content library, yet analysts believe Netflix does not need this deal to succeed, suggesting that the stock remains a buy even if the acquisition does not materialize.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 156.480
Low
180.00
Averages
309.59
High
400.00
Current: 156.480
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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