Oracle: CapEx Fears Have Led To Irrational Mispricing

The Asian Investor 33.18K Followers Follow Summary Oracle maintains a robust investment case, driven by surging cloud infrastructure revenue growth and a record-high revenue backlog. Despite a significant stock price decline since the fourth-quarter earnings report in June, underlying AI and cloud infrastructure demand remains exceptionally strong. Valuation has compressed to 13.9x FY2028 P/E, reflecting investor concerns over aggressive CapEx, yet backlog growth and pricing power offer margin upside. Market fears over CapEx are exaggerated given ORCL's 46% year-over-year backlog increase. Just_Super/E+ via Getty Images Although Oracle Corporation's ( ORCL ) shares have fallen almost 15% since my last coverage, the cloud infrastructure company reported much better-than-expected earnings for its first fiscal quarter on Thursday after the bell. Oracle's revenue backlog surged 46% year-over-year to $664 This article was written by The Asian Investor 33.18K Followers Follow I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ORCL, AMZN, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.