TradingKey – Oracle (ORCL) stock has experienced a sharp pullback since peaking on June 1, dropping from an interim high of $249 all the way to $114.5. This decline represents 4 to 5 standard deviations of Oracle’s historical volatility level, with technical factors such as concentrated investor selling, widening credit spreads, and at-the-market offerings jointly exacerbating downward pressure on the stock price.

However, the sharp drop in Oracle’s stock price does not entirely mean that the fundamentals of its AI cloud business have deteriorated.

On the contrary, the core question the market is currently re-evaluating is whether the company can convert its massive AI computing orders into actual revenue, profits, and cash flow. Oracle…