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Sentiment Shifts on These Beaten-Down Stocks: NFLX, ORCL
A few investor-favorite stocks, namely Netflix and Oracle, have faced rather tough action over the past six months, with NFLX shares down 22% whereas ORCL shares have seen a 50% decline.
But over the past month, the story has been entirely different, with both seeing nice gains.
Sentiment is seemingly shifting on the favorites after the rough stretch, undoubtedly a welcomed development among investors. But what’s been driving the turnaround?
Netflix Drops Bid for WBD
The streaming landscape has grown quite competitive over the years, but Netflix has continued to protect its leading position by implementing several positive measures, such as doubling down on original content, exploring new revenue streams like ad-supported membership tiers, and supporting live sports events.
The company’s shares had been dragged down partly due to its intended acquisition of WBD, but that has since fizzled out, with Netflix declining to raise its offer in the wake of Paramount Skydance's interest in acquiring WBD.
In a release, Netflix stated -
‘The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.’
The announcement of dropping out of the deal caused shares to reverse course entirely, seeing massive gains in the days following. Downward revisions for its current fiscal year during the ‘waiting’ period were also to blame for the poor share performance, but they have since stabilized.
Oracle Eases Fears
Oracle is a global technology titan that is evolving from a database powerhouse into a leading architect of the AI era. Sentiment on the stock has been rough since reaching an all-time high in September of 2025 on the back of capital-related concerns stemming from its current data center buildout, but recent quarterly results have helped ease concerns.
Cloud revenues soared 44% to $8.9 billion in USD in its latest release, which was at the high end of its previous guidance. Importantly, its remaining Performance Obligations, or RPO, ended the quarter at $553 billion, up a staggering 325% from the same period last year and up $29 billion from last quarter.
The Cloud revenue growth rate of 44% reflected a big acceleration from the 34% rate we saw in the year-ago period, with Cloud revenues now accounting for more than half of Oracle’s overall sales. The growth acceleration in the cloud and a higher contribution of cloud revenues help underpin its investments, with shares seeing a nice post-earnings reaction as a result.
Sales growth has remained broadly strong for the tech titan, as shown below. Revenue of $17.1 billion throughout the above-mentioned quarter reflected a 21% YoY growth rate, reflecting the strongest growth we’ve seen in years from the company.
Bottom Line
While sentiment on both Netflix and Oracle have been rather rough for the better part of the last year, recent developments, such as Netflix dropping its bid for WBD and Oracle posting strong cloud results that help underpin its massive investments, have helped turned the narratives around.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Netflix, Oracle and Paramount Skydance
For Immediate Release
Chicago, IL – March 25, 2026 – Today, Zacks Investment Ideas feature highlights Netflix (NFLX - Free Report) , Oracle (ORCL - Free Report) and Paramount Skydance (PSKY - Free Report) .
Sentiment Shifts on These Beaten-Down Stocks: NFLX, ORCL
A few investor-favorite stocks, namely Netflix and Oracle, have faced rather tough action over the past six months, with NFLX shares down 22% whereas ORCL shares have seen a 50% decline.
But over the past month, the story has been entirely different, with both seeing nice gains.
Sentiment is seemingly shifting on the favorites after the rough stretch, undoubtedly a welcomed development among investors. But what’s been driving the turnaround?
Netflix Drops Bid for WBD
The streaming landscape has grown quite competitive over the years, but Netflix has continued to protect its leading position by implementing several positive measures, such as doubling down on original content, exploring new revenue streams like ad-supported membership tiers, and supporting live sports events.
The company’s shares had been dragged down partly due to its intended acquisition of WBD, but that has since fizzled out, with Netflix declining to raise its offer in the wake of Paramount Skydance's interest in acquiring WBD.
In a release, Netflix stated -
‘The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.’
The announcement of dropping out of the deal caused shares to reverse course entirely, seeing massive gains in the days following. Downward revisions for its current fiscal year during the ‘waiting’ period were also to blame for the poor share performance, but they have since stabilized.
Oracle Eases Fears
Oracle is a global technology titan that is evolving from a database powerhouse into a leading architect of the AI era. Sentiment on the stock has been rough since reaching an all-time high in September of 2025 on the back of capital-related concerns stemming from its current data center buildout, but recent quarterly results have helped ease concerns.
Cloud revenues soared 44% to $8.9 billion in USD in its latest release, which was at the high end of its previous guidance. Importantly, its remaining Performance Obligations, or RPO, ended the quarter at $553 billion, up a staggering 325% from the same period last year and up $29 billion from last quarter.
The Cloud revenue growth rate of 44% reflected a big acceleration from the 34% rate we saw in the year-ago period, with Cloud revenues now accounting for more than half of Oracle’s overall sales. The growth acceleration in the cloud and a higher contribution of cloud revenues help underpin its investments, with shares seeing a nice post-earnings reaction as a result.
Sales growth has remained broadly strong for the tech titan, as shown below. Revenue of $17.1 billion throughout the above-mentioned quarter reflected a 21% YoY growth rate, reflecting the strongest growth we’ve seen in years from the company.
Bottom Line
While sentiment on both Netflix and Oracle have been rather rough for the better part of the last year, recent developments, such as Netflix dropping its bid for WBD and Oracle posting strong cloud results that help underpin its massive investments, have helped turned the narratives around.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
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support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.