Oracle: Market's Mispricing Is Starting To Unwind

Oracle is holding on to gains after bottoming above the $120 level, refuting the bears and benefiting from a broader software sector recovery. ORCL's $638 billion RPO, heavily indexed to OpenAI, underpins confidence in future revenue conversion and AI monetization. Despite infrastructure buildout risks, Oracle’s software business and multi-cloud AI database are delivering strong growth and mitigating AI infra execution concerns. At just 19x earnings, ORCL trades below its five-year average. The recent recovery supports my narrative that the market has priced in significant fears about its execution. If ORCL's recovery momentum is still early, investors should capitalize and take full advantage of it right now before it advances further.