Melius Research downgraded Oracle Corporation to Hold from Buy on February 10, 2026. Melius cited increasing Wall Street apprehension about the software giant's heavy infrastructure investments. These expenditures pose a potential negative impact on the company's ability to generate free cash flow through the end of the decade.
The downgrade counters recent market optimism. Oracle shares had rallied significantly the previous day despite the known capital-intensive strategy. Melius analyst Ben Reitzes set a $160 price target. This suggests limited upside from recent trading levels and highlights the ongoing debate over Oracle’s high-stakes bet on cloud and AI infrastructure.