Oracle's AI Bet vs Market Reality | Business and Finance News

Oracle’s stock hit a new yearly low, but Wall Street analysts still price it at more than double its current value — a massive disconnect fueled by doubts over whether Oracle can turn its AI contracts into real profits without burning through cash. Despite record revenue growth and a booming cloud infrastructure business, Oracle’s massive $55 billion data center investment left it with negative free cash flow and a downgraded credit rating. Meanwhile, analysts ignore the cash burn, focusing instead on strong earnings and revenue growth — even as some gains come from selling off assets. The market treats signed deals like promises, while analysts rely on backlogs that include unprofitable customers. With Oracle planning to raise $40 billion via debt and stock sales, the next few quarters will decide if they can finally turn contracts into cash. Until then, investors are better off staying cautious. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/d844fa45f388ed81