Articles Tagged: oci

2 articles found

Oracle’s 30% Spike: Cloud Megadeals, AI Capacity, and a $455B Backlog — Does the Outlook Justify the Rerating?

Oracle rocketed after earnings despite a headline EPS and revenue miss, as investors focused on an extraordinary multiyear demand picture tied to artificial intelligence and cloud infrastructure. Remaining performance obligations surged to $455 billion, management mapped a path from roughly $10 billion of OCI revenue in FY2025 to $18 billion in FY2026 and as high as $144 billion by FY2030, and capex is set to climb about 65% to approximately $35 billion this year to build capacity. The core debate now is whether backlog quality, conversion tempo, and execution against aggressive capacity plans can sustain the stock’s rerating in the face of power, supply, and competitive constraints.

OracleORCLOCI+13 more

Oracle’s AI Build-Out Has Rewired Its Valuation: What the Stock’s Surge Prices In—and What Must Still Be Proven

In the six weeks leading into August, Oracle’s share price climbed nearly 19%, closing at $250.05 on Friday, August 8, up from roughly $210 at the end of June, according to Yahoo Finance. The rally crested intraday at a fresh 52-week high of $260.87 on July 31, placing Oracle among the most visible beneficiaries of the market’s AI infrastructure trade. Behind the price action sits a striking capital expenditure cycle: free cash flow turned negative in the fiscal fourth quarter as Oracle accelerated data center build-outs tied to AI demand, SEC filings show for Q4 FY2025 (quarter ended May 31, 2025). That combination—rising price, rising capex, and the promise of AI-driven cloud growth—has transformed how investors value a software stalwart now trading as a capacity-constrained infrastructure provider in transition. Yet, the filings also reveal leverage, working-capital tightness, and margins that have not visibly expanded despite the hype, complicating the bull case. This article synthesizes recent filings, valuation metrics, and trading dynamics to examine what the market is discounting in Oracle’s AI growth story—and what still needs to show up in the numbers.

OracleORCLAI+12 more