$Oracle(ORCL)$ I think the mar

$Oracle(ORCL)$ I think the market is focusing on the wrong metric.

A 363% increase in RPO is extraordinary. Customers don't commit to multi-year contracts unless they genuinely need the capacity. To me, this suggests AI demand remains stronger than supply.

The concern is whether Oracle is spending too aggressively on data centers and GPUs. That's a valid risk, but if management executes well, today's spending could become tomorrow's moat.

What I'm watching:

🔹 RPO growth

🔹 Cloud revenue growth

🔹 Operating margin trend

🔹 AI infrastructure utilization

The biggest winners of the AI boom won't necessarily be the companies building the models. They may be the companies providing the infrastructure, power and cloud capacity behind them.

My takeaway:

Short-term, AI spending may pressure margins.

Long-term, Oracle is positioning itself as one of the key beneficiaries of the AI infrastructure race.

Would you rather own Oracle, Microsoft or Nvidia for the next 5 years?

Oracle Backlog Hits $664B — Can Cloud Stocks Stage a Comeback?

Oracle fell 5.38% into the print, then turned after hours, +4.38% to $159.64. Q1 FY27 revenue was $19.35bn, +30%, just under the $19.53bn consensus, but cloud infrastructure hit $7.4bn, +121%, and RPO reached $664bn against the $638bn carried into the day. Over $30bn of AI cloud contracts signed, 300,000+ GPUs delivered, near triple the prior quarter; guidance went to adj EPS $8.10 and at least $90bn. Nebius −5.09%, CoreWeave about −5%: names that live on capital markets take rates hardest. Faster conversion means more cash out first. Hold Oracle, Nebius, or CoreWeave into higher rates?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":574694637888584,"tweetId":"574694637888584","gmtCreate":1781314712963,"gmtModify":1781316485697,"author":{"id":4094729837265930,"idStr":"4094729837265930","authorId":4094729837265930,"authorIdStr":"4094729837265930","name":"christopho","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":11,"crmLevelSwitch":0,"individualDisplayBadges":[],"wearingBadges":[],"fanSize":2,"starInvestorFlag":false},"themes":[{"themeId":"774260ebedef40ea8b42951d02d506bd","categoryId":"7a15628ce2174325bddc6229505e0d70","name":"Oracle Backlog Hits $664B — Can Cloud Stocks Stage a Comeback?","type":0,"rnLink":"https://laohu8.com/RN?name=RNTheme&page=/theme/detail&rndata={\"themeId\":774260ebedef40ea8b42951d02d506bd}&rnconfig={\"headerBarHidden\": true}","description":"Oracle fell 5.38% into the print, then turned after hours, +4.38% to $159.64. Q1 FY27 revenue was $19.35bn, +30%, just under the $19.53bn consensus, but cloud infrastructure hit $7.4bn, +121%, and RPO reached $664bn against the $638bn carried into the day. Over $30bn of AI cloud contracts signed, 300,000+ GPUs delivered, near triple the prior quarter; guidance went to adj EPS $8.10 and at least $90bn. Nebius −5.09%, CoreWeave about −5%: names that live on capital markets take rates hardest. Faster conversion means more cash out first. Hold Oracle, Nebius, or CoreWeave into higher rates?","image":"https://community-static.tradeup.com/news/c4612552aab8a1c3977965d7843a9e21"}],"images":[],"coverImages":[],"title":"","html":"<html><head></head><body><a href=\"https://ttm.financial/S/ORCL\">$Oracle(ORCL)$&nbsp;</a> I think the market is focusing on the wrong metric.\n \nA 363% increase in RPO is extraordinary. Customers don't commit to multi-year contracts unless they genuinely need the capacity. To me, this suggests AI demand remains stronger than supply.\n \nThe concern is whether Oracle is spending too aggressively on data centers and GPUs. That's a valid risk, but if management executes well, today's spending could become tomorrow's moat.\n \nWhat I'm watching:\n🔹 RPO growth\n🔹 Cloud revenue growth\n🔹 Operating margin trend\n🔹 AI infrastructure utilization\n \nThe biggest winners of the AI boom won't necessarily be the companies building the models. They may be the companies providing the infrastructure, power and cloud capacity behind them.\n \nMy takeaway:\nShort-term, AI spending may pressure margins.\nLong-term, Oracle is positioning itself as one of the key beneficiaries of the AI infrastructure race.\n \nWould you rather own Oracle, Microsoft or Nvidia for the next 5 years?</body></html>","htmlText":"<html><head></head><body><a href=\"https://ttm.financial/S/ORCL\">$Oracle(ORCL)$&nbsp;</a> I think the market is focusing on the wrong metric.\n \nA 363% increase in RPO is extraordinary. Customers don't commit to multi-year contracts unless they genuinely need the capacity. To me, this suggests AI demand remains stronger than supply.\n \nThe concern is whether Oracle is spending too aggressively on data centers and GPUs. That's a valid risk, but if management executes well, today's spending could become tomorrow's moat.\n \nWhat I'm watching:\n🔹 RPO growth\n🔹 Cloud revenue growth\n🔹 Operating margin trend\n🔹 AI infrastructure utilization\n \nThe biggest winners of the AI boom won't necessarily be the companies building the models. They may be the companies providing the infrastructure, power and cloud capacity behind them.\n \nMy takeaway:\nShort-term, AI spending may pressure margins.\nLong-term, Oracle is positioning itself as one of the key beneficiaries of the AI infrastructure race.\n \nWould you rather own Oracle, Microsoft or Nvidia for the next 5 years?</body></html>","text":"$Oracle(ORCL)$ I think the market is focusing on the wrong metric. A 363% increase in RPO is extraordinary. Customers don't commit to multi-year contracts unless they genuinely need the capacity. To me, this suggests AI demand remains stronger than supply. The concern is whether Oracle is spending too aggressively on data centers and GPUs. That's a valid risk, but if management executes well, today's spending could become tomorrow's moat. What I'm watching: 🔹 RPO growth 🔹 Cloud revenue growth 🔹 Operating margin trend 🔹 AI infrastructure utilization The biggest winners of the AI boom won't necessarily be the companies building the models. They may be the companies providing the infrastructure, power and cloud capacity behind them. My takeaway: Short-term, AI spending may pressure margins. Long-term, Oracle is positioning itself as one of the key beneficiaries of the AI infrastructure race. Would you rather own Oracle, Microsoft or Nvidia for the next 5 years?","highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/574694637888584","repostId":0,"isVote":1,"tweetType":1,"viewCount":1626,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["ORCL"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":824,"optionInvolvedFlag":false,"subscribersOnly":false,"subscribersOnlyAccessible":false,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/574694637888584"}