Jim Cramer on Oracle (ORCL): "I Don't Like What They're Doing to Their Balance Sheet"

Oracle Corporation (NYSE:ORCL) is one of the stocks Jim Cramer looked at recently. When a caller asked if they should sell or hold their position in the stock, Cramer said:

Well, Oracle, I don’t like what they’re doing to their balance sheet, and I always like companies with good balance sheets, and I think that this one is therefore not investible right now. I think it can bounce, and if it does bounce, I think you should sell it.

Oracle Corporation (NYSE:ORCL) provides cloud and on-premise software, databases, and IT infrastructure to help businesses manage operations. During the January 6 episode, a caller asked what was wrong with the company, and Cramer replied:

Okay, well, this is actually involved with the debt side of Oracle. They had to borrow a lot of money to be able to… build-out all these data centers they want to. Then people got increasingly worried that maybe one of its largest clients, OpenAI, won’t be able to pay for that. I now am taking that off the table. I don’t want to buy Oracle because I’m not really sure about their business model, but I am not, I would take off the table that they’re, that the stock, it’s… 26 times earnings. If it got down a little bit more, I would just tell you to buy it.

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