CoreWeave's bond market flashed a warning that spread far beyond one AI startup, and Oracle shareholders absorbed a nearly 9% loss before the trading day even ended.
ORCL's AI infrastructure spending pushes free cash flow into negative territory, but surging cloud demand and $664 billion in remaining performance obligations offer support.
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Oracle (ORCL) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
CoreWeave (NASDAQ:CRWV) stock is at $70.37 down 10% in morning trading, as a spike in its bond yields revives questions about how the AI-focused cloud provider pays for its chips.
Oracle (ORCL) shares gained 3% on Tuesday as investors assessed the company's proposed electricity agreement for its Project Jupiter artificial intelligence data centre in New Mexico and a separate collaboration with Microsoft and Marvell Technology on data centre security. The proposed agreement with El Paso Electric would provide electricity during the final stages of construction and initial commissioning tests at Project Jupiter.
Oracle's revenue growth reached 30% last quarter, driven by 60% growth in cloud revenue, and the forward outlook points to further acceleration. Strong top-line growth shows robust revenue conversion from its current RPO balance, but we also saw YoY growth normalize and bookings decline. The company is facing declining gross margin and higher interest expense, pressuring earnings, which should unlock more upside once capex slows in the medium term.
Oracle (NYSE: ORCL) stock has attracted a $3.48 million insider purchase from board member and former Quest Diagnostics CEO Stephen Rusckowski, as shares trade nearly 60% below their all-time high.
Oracle shares have shed half their value while the company quietly signed a backlog so large it dwarfs what most investors think the business is worth.
Oracle's AI data centers are running behind on pipelines and permits, so the company found an unusual workaround to keep construction on schedule and avoid penalties on hundreds of billions in signed contracts.
Oracle stock has wavered in the past few months as investors watch the developments at OpenAI, one of its biggest clients. ORCL was trading at $142.35 on Friday, down by 42% from its highest point this year.
Oracle's cloud backlog keeps growing and its quarterly results keep beating estimates, yet the stock sits near a 52-week low. Something in that gap is either a serious warning sign or the biggest mispricing in megacap tech right now.