Oracle falls after Melius cuts price target

Cloud service provider Oracle's ORCL.N shares fall 4.6% to $139.13

Melius Research cuts PT on company's shares to $180 from $188

Oracle Cloud Infrastructure's (OCI) gross margins could fall hundreds of points into the lower 30%'s for the next few years as the company focuses on funding massive growth prospects, not factoring in any residual impacts from tariffs on systems - Melius

Melius expects OCI to retain a very important and growing role in managing the U.S. user data for TikTok, should a domestic transaction ensue soon

While ORCL's growth could be lumpy, Melius sees prospects for sales to accelerate above consensus in FY26 as backlog at OCI rolls into revenue

As of last close, Oracle stock down 12.5% YTD