Oracle Faces Bearish Bets Before Earnings Despite $638 Billion Backlog
Updated
Updated · Yahoo Finance · Sep 10
Oracle Faces Bearish Bets Before Earnings Despite $638 Billion Backlog
3 articles · Updated · Yahoo Finance · Sep 10
Summary
Oracle heads into earnings down 17.83% this year, with options traders heavily selling $150 calls even as the stock trades around $158.62.
That caution contrasts with management guidance for 27% to 29% revenue growth, 58% to 64% cloud growth and non-GAAP EPS of $1.72 to $1.76, roughly in line with consensus.
Fundamentals remain strong: remaining performance obligations reached $638 billion, up 363% year over year, including $75 billion tied to prepaid or customer-supplied GPU arrangements.
Recent operating data also point to AI-driven demand, with cloud infrastructure up 93% last quarter, multi-cloud database revenue up 404%, $67 billion in AI infrastructure contracts signed and GPU utilization at 97.5%.
The setup leaves Oracle trying to reverse a sentiment slump after losing roughly half its value since a 35.95% post-earnings surge a year ago, even as the S&P 500 and Nasdaq 100 hit fresh highs.