Oracle's shares have dropped over 50% in the past year amid market fears and AI sector volatility, but the company has quietly built a massive $664 billion backlog of signed contracts, including $30 billion in new AI deals in Q1. Cloud revenue surged 121%, now making up 60% of total revenue, with strong GPU utilization and premium renewals easing concerns about AI hardware value. Oracle's revenue growth outpaces peers like Microsoft and Amazon, with a lower forward P/E and a steady dividend yield of 1.48%. Risks include negative free cash flow due to heavy capital expenditures and increased interest expenses, but operating cash flow and cash reserves remain strong. Management expects significant cloud revenue growth ahead, supporting the thesis that the current selloff is an opportunity to buy undervalued shares with solid long-term prospects.
Oracle's recent struggles contrast with its strong contract backlog and cloud growth, as highlighted in the article. On Pluang, Oracle's shares trade at USD 137.89, down 2.57% as of Oct 12, 2026, 22:02 WIB, with a market cap of $428.65 billion and a dividend yield of 1.41%. Compared to peers, Microsoft is priced at USD 540.75, up 1.06%, while Amazon trades at USD 260.97, down 0.56%.
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