Meanwhile, Oracle’s high‑capacity AI data center builds are progressing. The company’s blog notes active AI infrastructure projects in partnership with OpenAI at two campuses in Texas and sites in New Mexico, Wisconsin, and Michigan. For example, Michigan regulators recently approved a plan to power a 1.4‑gigawatt Oracle/OpenAI data hub in Saline Township. In short, Oracle continues to win new cloud contracts and invest in AI-capable data centers, which could drive the long-term growth that analysts assume. ...

Core Insights - PineStone Asset Management Inc. sold 161,430 shares of Oracle Corporation for approximately $41.11 million in Q3, reducing its stake to 3.4 million shares valued at $964.5 million at quarter-end [1][2]. Company Overview - Oracle Corporation's stock price closed at $291.31, with a market capitalization of $830.5 billion, TTM revenue of $59 billion, and TTM net income of $12.4 billion [4]. - The company operates globally in enterprise software and cloud infrastructure, leveraging a broad product portfolio to deliver mission-critical solutions [6]. Performance Metrics - Oracle's shares increased by 68% over the past year, significantly outperforming the S&P 500's nearly 14% gain during the same period [3][8]. - PineStone's Oracle position now represents 6% of its reportable U.S. equity assets [3]. Strategic Insights - The sale of Oracle shares aligns with PineStone's broader strategy of rebalancing its portfolio, which included reducing positions in other large technology companies [7]. - Oracle's long-term growth prospects are supported by deep enterprise relationships, accelerating cloud adoption, and increasing exposure to AI technologies [11]. Future Projections - Oracle projects $225 billion in annual revenue and $21 in EPS by the end of the decade, driven by its expanding cloud infrastructure and partnerships, such as the multibillion-dollar deal with OpenAI [10].

Core Viewpoint - Oracle is set to play a crucial role in the restructuring of TikTok in the United States, which includes rebuilding its algorithm and managing user data through a cloud framework [1][2]. Group 1: Company Performance - Oracle's stock experienced a decline of over 5% in the current session but has risen nearly 5% over the past half week, indicating a potential buying opportunity for investors [2]. - The company recently reported strong fiscal Q1 results, showcasing significant growth in its cloud segment and a multiyear order backlog, which may enhance its earnings potential [2][3]. - Over the last 52 weeks, Oracle's share price increased from a low of $118.86 to a high of $345.72, currently standing at $310.70, reflecting a year-to-date increase of over 60%, significantly outperforming the S&P 500 Index's 15% rise [5]. Group 2: Market Position and Valuation - Oracle is a leading global enterprise software and cloud infrastructure provider, with a market capitalization exceeding $930 billion, operating in SaaS, PaaS, and IaaS segments [4]. - The company's stock is trading at a forward price-earnings (P/E) multiple of 57.6x, which is considered reasonable compared to high-growth peers like Microsoft and Amazon, while the forward price-sales (P/S) multiple is at 7.47x, reflecting strong growth expectations [6].

Core Insights - Oracle's recent earnings report revealed a significant backlog tied to multi-year AI and cloud contracts, raising questions about the speed of revenue conversion [1][4] - The company's remaining performance obligations (RPO) and plans for scaling cloud infrastructure suggest improved revenue visibility over the long term [2] Financial Performance - In Q1 of fiscal 2026, Oracle reported total revenue of $14.9 billion, a 12% increase year-over-year, with cloud infrastructure revenue soaring 55% to $3.3 billion [4] - Non-GAAP earnings per share rose 6% year-over-year to $1.47 [4] Backlog and Revenue Recognition - Oracle's RPO surged 359% to $455 billion, attributed to four multi-billion-dollar customer contracts [4] - Expected revenue recognition from RPO is approximately 10% within the next 12 months, 25% in months 13 to 36, 34% in months 37 to 60, and the remainder after five years, indicating a back-weighted revenue profile [5] Market Sentiment - CEO Safra Catz described the quarterly results as "astonishing," highlighting the growing demand for Oracle Cloud Infrastructure (OCI) [5] - Despite the positive long-term outlook, some investors express concerns regarding the timing of backlog conversion and the execution of Oracle's ambitious capacity expansion plans [6][7]