Analysis of Reddit Post Claims on Oracle (ORCL) and Vertiv (VRT) Cooling Efficiency & Valuation Risks

On November 18, 2025 (EST), a Reddit post [1] claimed Oracle (ORCL) and Vertiv (VRT) are overvalued due to inefficient data center cooling leading to rapid obsolescence, recommending put options. Contrary to this bearish view, both stocks posted positive returns on the event date: ORCL +1.98% (close $220.49) and VRT +0.95% (close $164.86) [0]. Companies are actively addressing cooling efficiency: ORCL is committed to 100% renewable energy by 2025 and uses liquid cooling via partnerships [2], while VRT launched new liquid cooling solutions for high-density AI environments [3]. Valuation metrics show high P/E ratios: ORCL (50.08x) and VRT (60.81x) [0], indicating potential risk if AI infrastructure demand slows. However, analyst consensus remains strongly bullish: ORCL has 59.5% buy ratings (target $365) and VRT has 94.7% buy ratings (target $196) [0].

1. Disconnect between Reddit’s bearish thesis and market/analyst sentiment: The positive event-day returns and strong analyst buy consensus suggest the market does not immediately validate the post’s obsolescence claims.
2. Cooling technology evolution is critical for AI infrastructure: Both companies’ investments in advanced cooling mitigate obsolescence risk, which the Reddit post may have overstated.
3. Valuation risk persists: High P/E ratios indicate sensitivity to AI demand trends, as reflected in ORCL’s 1-month drop (-24.31%) [0].

• Risks
  : Elevated valuation multiples (ORCL:50x, VRT:60x) [0] could lead to corrections if AI demand underperforms; rapid AI evolution may still pose long-term obsolescence risks despite cooling investments.
• Opportunities
  : Growing demand for efficient AI data center cooling positions ORCL and VRT as key players; their leadership in cooling tech could drive revenue growth if adoption accelerates.

• Event date: November 18, 2025 (EST) [1].
• Stock performance: ORCL +1.98% (event day), VRT +0.95% (event day) [0].
• Valuation: ORCL P/E=50.08x, VRT P/E=60.81x [0].
• Analyst consensus: ORCL (59.5% buy), VRT (94.7% buy) [0].
• Cooling initiatives: ORCL’s renewable/liquid cooling partnerships [2], VRT’s new AI-focused cooling solutions [3].