Analyst Says He's Going to 'Sleep Like a Baby' After Trimming Oracle (ORCL) Position

Oracle Corp (NYSE:ORCL) is one of the 10 Buzzing Stocks Everyone is Talking About.

Jim Lebenthal, partner at Cerity Partners, explained in a recent program on CNBC why he’s trimming his position in Oracle Corp (NYSE:ORCL).

“I’ve been in the stock 2 and a half years. I’m up 150%. It’s become a very big position. I’m trimming the stock. I’m going to sleep like a baby tonight trimming the stock. I’m still going to own shares. However, we’re entering earnings season. We all know that in earnings season something gets stupidly dislocated. I have been fully invested. I need to have some dry powder. If I want to buy low, I have to sell high. That’s the name of the game.”

Lebenthal, however, insisted that he’s not “hating on” Oracle Corp (NYSE:ORCL). He said he first bought the stock when it was around $86.

For fiscal 2026, Oracle expects strong cloud growth amid rising AI datacenter demand. The company is spending heavily in Cloud infrastructure. The stock has gained about 68% over the past year and its P/E is now above 50. As most of its revenue now comes from cloud services, any slowdown in AI momentum could weigh on growth and margins. Photo by Science in HD on Unsplash

Mar Vista U.S. Quality Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its second quarter 2025 investor letter:

“Oracle Corporation (NYSE:ORCL) shares rebounded from the pressure experienced in calendar Q1 2025, as concerns about tariffs impacting IT budgets proved to be overstated. The company reported a strong fiscal Q4 2025 (May quarter), driven by robust demand for its hyperscale cloud offering, OCI Gen 2, which supports large language models.

Oracle issued a confident outlook, projecting accelerating revenue and operating income growth over the intermediate term as it continues its strategic transition to cloud-based solutions. The OCI Gen 2 platform is particularly well-suited for generative AI workloads, where Oracle is gaining both mindshare and market share within the hyperscaler cloud market. Notably, in the most recent quarter, Oracle reported strong bookings, highlighted by a 41% year-over-year increase in remaining performance obligations, reaching nearly $138 billion.

Further reinforcing its momentum, Oracle filed an 8-K disclosing several large OCI Gen 2 contracts signed in the current quarter (August quarter), including a new agreement with a single customer expected to generate more than $30 billion in annual revenue beginning in FY2028.

In parallel, Oracle has spent more than a decade modernizing its back-office ERP, supply chain management, and HR application suites for the cloud. These long-term investments are now translating into market share gains across strategic back-office applications, a segment that continues to exhibit healthy growth.”

While we acknowledge the potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.