Oracle Stock News

Oracle (ORCL +0.70%) stock is experiencing increasing volatility as investors are uncertain about what to make of this business.

Broadcom looks like it's going to open a little bit positive during the trading session here on Wednesday, as the market is trying to bounce from a significant support level in the form of $325 or so.

Oracle's cloud infrastructure business is booming. Reddit will profit from the convergence of the social media, news, and search markets.

Oracle is building hundreds of data centers to meet demand for computing capacity from artificial intelligence developers. The company's order backlog is over $500 billion, but investors are worried that it won't all convert into revenue.

Oracle Corporation is rapidly emerging as a key AI infrastructure provider, with its Oracle Cloud Infrastructure revenue up 66% y/y. ORCL's backlog surged to $523 billion, a 433% increase, driven by major multi-year AI contracts with Meta and Nvidia. Cloud now represents 50% of total revenue, with OCI as the main growth engine and SaaS applications providing steady low-teens growth.

Oracle (ORCL) has been under immense pressure in recent weeks after its Q2 earnings confirmed the company's aggressive AI investments aren't immediately translating into bottom-line strength. At the time of writing, ORCL shares are down some 40% versus their September high.

Oracle's (ORCL +6.63%) stock price is falling, and investors are curious about the causes.

Oracle is upgraded to buy, driven by the robust cloud growth prospects arising from the outsized RPOs and the overly discounted valuations (versus hyperscaler peers) from the recent meltdown. The elevated capex/debt are temporary growth pains, with the recurring revenue and backlog monetization at elevated gross margins likely to drive cash flow conversion. ORCL's top/bottom-line growth prospec...