Oracle earned the best valuation grade among seven big tech and cloud names, according to a GuruFocus report, as investors stay cautious after a sharp selloff in AI-linked stocks.
Oracle Corp. (ORCL) ranked first on valuation among seven large technology and cloud computing companies, according to a GuruFocus report carried by Yahoo Finance on Friday. The ranking comes as many investors remain wary after a steep selloff in stocks tied to artificial intelligence.
Oracle received a B. IBM and Amazon each got a D. Apple, Meta Platforms, Alphabet and Microsoft all received F grades.
The ratings compare a company's share price with its underlying fundamentals, and higher grades indicate more favorable valuations under the methodology described in the report. By that yardstick, Oracle's stock looks comparatively reasonable, while the four F-rated companies look expensive.
Oracle shares rose 2.5% in premarket trading Friday, according to the report. The AI and semiconductor sectors were trying to recover from Thursday's losses.
Moves among the other large technology names were mixed. Meta and Alphabet each gained 0.4%, while Amazon fell 1% and Microsoft dropped 1.5%.
The pattern shows that a valuation grade is not a day-to-day forecast. Meta and Alphabet both received F grades yet edged higher, and Amazon, which got a D, slipped. Premarket moves are also early indications that can change once the regular session begins.
The report says the gap in grades reflects how investors are pricing important cloud and technology businesses amid uncertainty over spending on AI infrastructure. It also cautions that a stronger relative valuation does not necessarily mean Oracle carries less risk.
The company still faces large data-center investment needs, and there are doubts about how much return those projects will generate. Building capacity for AI and cloud customers generally requires heavy upfront spending on facilities, equipment and power, with payoffs that arrive over time and are hard to predict.
A valuation score measures price against current fundamentals. It does not settle whether big capital commitments will eventually earn their keep, and that question is central to how the market views several companies in the group.
According to the report, the next catalyst will be whether the bounce in the information technology sector continues. If it does, investors could reassess how they value Oracle based on its capital spending plans and earnings projections.
The report does not describe what might happen if the rebound fades, and it gives no further detail on who produced the ratings beyond summarizing the methodology. For now, the ranking offers a snapshot of how large technology stocks compare on price versus fundamentals at a time of lingering nerves about AI.
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