Jim Cramer Says Oracle's $455 Billion Backlog Is Because Of Stargate Project: 'Who Else Would Be Placing Those Orders'

Core Viewpoint - Oracle Corp. has experienced a significant increase in its backlog, attributed to the 'Stargate' AI infrastructure project, with a 359% surge leading to a total backlog of $455 billion [1][5]. Group 1: Market Reaction - Jim Cramer expressed surprise at the market's reaction to Oracle's backlog, questioning the source of the orders contributing to this surge [2]. - Cramer noted a phenomenon of "panic buying" in Oracle's stock, indicating a potentially high short position in the market [2]. Group 2: Financial Performance - Despite Oracle narrowly missing Wall Street's first-quarter revenue and earnings estimates, the stock soared 28.36% in after-hours trading, driven by the company's substantial future revenue pipeline [4]. - Oracle's first-quarter earnings were reported at $1.47 per share with revenue of $14.92 billion, both slightly below analyst expectations [4]. Group 3: Future Growth Potential - The Remaining Performance Obligations (RPO) surged by 359% to $455 billion, with CEO Safra Catz confirming that four multi-billion-dollar contracts were signed with three different customers in the first quarter [5]. - Catz indicated that the RPO is expected to exceed half-a-trillion dollars in the coming months, signaling a period of explosive growth for Oracle's cloud infrastructure division [5]. Group 4: Stargate Project - The Stargate project, a joint venture involving Oracle, OpenAI, and SoftBank, is central to the speculation regarding the source of Oracle's backlog growth [6].