Oracle Shares Plunge 50% in a Year Despite $638 Billion Cloud Backlog

EarningsAnalyst Impact 4
โดย 24/7 Wall St.·Read original
Summary · why it matters

Oracle shares have crashed roughly 50% over the past year, yet the company holds a $638 billion cloud backlog and reported 93% IaaS growth, supporting a buy rating and a $195.52 price target from 24/7 Wall St. The target implies 56.51% upside from Monday's close, with a bull case reaching $350.82. Oracle's remaining performance obligations exceed Microsoft's $627 billion, but Oracle trades at a forward P/E of 16 compared to Microsoft's trailing 29 and Amazon's trailing 35. The sell-off was driven by an S&P Global downgrade to BBB-, widening credit-default swap spreads, and plans to raise roughly $40 billion in fiscal 2027 to fund AI infrastructure, while free cash flow turned negative $23.69 billion against $55.66 billion in capex. Despite the balance-sheet stress, operating results showed cloud infrastructure revenue up 93% to $5.79 billion and the multicloud AI database growing 404%, with management raising fiscal 2027 non-GAAP EPS guidance to $8.05 on $90 billion in revenue.

Impact on stocks 5

Artificial Intelligence▲ · 3 stocks
Cloud & Digital Infrastructure▼ · 2 stocks
Oracle Corporation
ORCL
▼ NegativeCapitalrelevance

Shares plunged 50% due to S&P downgrade, widening CDS spreads, and $40B debt plan; negative capital/financing news.

Theme Impact 3

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