This article first appeared on GuruFocus.
Oracle Corp. (ORCL, Financials) was best stock on a valuation basis out of seven big technology and cloud computing firms as investors remained cautious after a steep selloff in artificial intelligence equities.Oracle scored a B rating and IBM and Amazon received a D rating. Apple, Meta Platforms, Alphabet and Microsoft all got F scores.The rating assesses stock prices compared to firm fundamentals, with higher grades indicating more favorable valuations according to the methodology.Oracle shares were up 2.5% in premarket trade Friday as AI and semiconductor sectors tried to rebound from losses on Thursday.Other big technology stocks were divided. Meta and Alphabet climbed 0.4% apiece as Amazon slipped 1% and Microsoft slid 1.5%.The value discrepancy reflects how investors are valuing key cloud and technology businesses despite uncertainties about investing on AI infrastructure.But a better relative valuation rating doesn’t always suggest Oracle has less risk.The corporation still has big data-center investment needs and doubts about how much return such projects will deliver.The next trigger will be if the IT sector bounce continues and investors re-rate Oracle on its capital investment and earnings projections.
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