Jim Cramer Says Sell Oracle, Dodge Liquor Stocks, Favor Banks & Pharma

Jim Cramer labels Oracle too risky for an IRA, urges avoiding all liquor stocks, and pivots toward banks, pharma, and select semiconductors for late‑2026.

Oracle’s Cloud Surge vs. Cash‑Flow Drain

■Oracle’s Q4 FY2026 filing shows Cloud Infrastructure revenue jumping 93% YoY to $5.79 billion.

■Remaining performance obligations exploded to $638 billion, up 363%.

■Full‑year free cash flow was ‑$23.69 billion against capex of $55.66 billion.

■Management plans to raise roughly $40 billion in FY2027 via debt and equity.

■The stock slid 47.64% over the past year and 33.43% in the last month to $126.78.

Spirits Sector in Freefall: Why Diageo Fits the Warning

■Cramer called the liquor business “cold,” advising investors to stay clear of any alcohol‑related equity.

■Diageo (NYSE:DEO) posted only modest net‑sales growth in fiscal Q3 2026 while its largest region, North America, weakened materially and US spirits contracted.

■Over the past five years, DEO is down 49.1%, earning it a “clear three” rating in Cramer’s 1‑2‑3 framework.

Late‑2026 Playbook: Cyclicals, Defensives & Select Semis

■Per Cramer’s 1‑2‑3 rule, any holding ranked three—Oracle and liquor stocks—should be sold immediately.

■His favored sectors for late‑2026: banking, pharmaceuticals, and select semiconductors.

■Highlighted performers: JNJ up 55% and JPM up 22% over the past year.

■The analyst who correctly called NVIDIA in 2010 has released a free top‑10 AI‑stock list.

Captain Rıza Deniz: While Oracle’s cloud franchise demonstrates robust growth, the persistently negative free cash flow and outsized capital expenditures strain its financial flexibility, raising risk for long‑term IRA holdings. The liquor sector faces structural headwinds from shifting consumer preferences and a pronounced downturn in North American demand, reinforcing the downtrend. Cramer’s tilt toward defensive banks and pharma—plus selective semis—aligns with a high‑rate environment that favors income‑generating, low‑volatility assets.