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Citi says Oracle selloff may be driven by volatility and capital moves
Oracle is down about 23% year to date, and Citi argues credit spread widening and at-the-market share issuance helped drive the sharp decline.
Citi is urging investors to consider Oracle after the shares slid through 2026, arguing the drop was driven more by trading dynamics than a break in the underlying software business, according to Yahoo Finance. Oracle has fallen about 23% year to date and is roughly 56% below its record high of $345.72 set on Sept. 10, 2025.
In a call reiterated on Aug. 26, Citi kept a Buy rating and a $330 price target on Oracle, a level the report says would more than double the stock from where it recently traded. Citi analyst Tyler Radke, co-head of U.S. software equity research, said Oracle’s decline followed a statistically rare move in the summer, when the stock lost more than half its value within roughly 30 to 40 trading sessions and bottomed near $114.50 in late July.
Radke attributed the selloff to several factors that he expects to ease, including credit spread widening tied to concerns about Oracle’s rising debt, which increased the cost to insure its bonds and pressured the equity. He also pointed to aggressive share issuance through an at-the-market program funding Oracle’s data center buildout, saying the additional share supply can cap rallies.
The report also cites sentiment-driven selling that built on itself after negative headlines. Radke said he wants Oracle to signal it is finished with the equity issuance, arguing that doing so would remove a key source of forced selling pressure so the stock can trade more on fundamentals again.