Analyst Says He's Going to ‘Sleep Like a Baby' After Trimming Oracle (ORCL) Position
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.
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 .
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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