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Oracle's $664B backlog drives heavy capex, pressuring near-term finances but signals strong AI cloud growth potential.

Analyst Insights
19 Sep 2026
Seeking Alpha
View Source
Bullish
Oracle's $664B backlog drives heavy capex, pressuring near-term finances but signals strong AI cloud growth potential.

Oracle Corporation faces near-term financial pressure due to a $664 billion backlog requiring significant capital expenditure, impacting cash flow, balance sheet, and net income. Despite this, the company is experiencing strong revenue growth and profit margins in its cloud infrastructure and applications, driven by rising AI compute demand. The recent stock price drop has created a buying opportunity with a discounted valuation and potential upside to a long-term price target of $291.70. Risks include delayed performance improvements, insider selling, and data center delays, but Oracle remains a strong contrarian buy near technical support levels around $110 to $140.

As of Sep 20, 2026 01:41 WIB, Oracle Corporation shares trade at USD 147.60 on Pluang, down 1.98% for the day. The stock shows a market cap of $446.33 billion and an enterprise value of $570.14 billion, with a dividend yield of 1.35%. Despite recent price declines, Pluang users maintain a buying interest with 62% of orders being buys at this time.

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