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Oracle’s AI Bet Faces Scrutiny as Shares Fall and UBS Cuts Target

Investors want proof that record obligations will translate into faster growth.

Overview

  • Oracle shares trade roughly 40% to 43% below recent highs following a mixed quarterly update.
  • The company reported about 13% year-over-year revenue growth and 66% cloud infrastructure growth, a touch below investor expectations.
  • Remaining performance obligations reached roughly $523 billion, including a $68 billion quarterly increase linked to deals with Meta and Nvidia.
  • One report says RPO surged 438% from a year ago and rose 15% sequentially, with more contracted revenue expected within the next 12 months.
  • UBS lowered its price target to $325 but maintained a Buy rating as the market watches for backlog conversion and returns on elevated capital spending.