Special Invitation: My office has been getting lots of emails about Anthropic and OpenAI. And it looks like readers want to invest in these private companies – before the IPO. |
That’s why I’m hosting the IPO Insiders Project. It reveals exactly how to invest in the fastest growing private tech companies – including Anthriopic and OpenAI. |
Simply go here to watch now. |
Oracle (NYSE: ORCL) closed down 5.2% Thursday at $153. The stock is 53% below where it traded a year ago, and 22% lower on the year while the S&P 500 is up 11%. |
Then the earnings hit after the bell. |
Revenue came in at $19.3 billion, up 30% from a year ago. Adjusted earnings of $1.92 per share beat the $1.74 Wall Street expected, and rose from $1.47 last year. |
Shares jumped as much as 6% on Friday. |
But the headline numbers aren't the story. |
Cloud infrastructure — the business renting AI servers — generated $7.4 billion in the quarter. That's up 121% year over year. The rest of Oracle grew 3%. |
Here's the number nobody was ready for. |
Remaining performance obligations — contracted work not yet booked as revenue — reached $664 billion. That's up $26 billion in a single quarter. |
Oracle's entire market cap is $466 billion. |
The backlog is 1.4x the entire company’s market value. |
Management closed more than $30 billion in new AI contracts during the quarter without putting up additional cash from Oracle. Customers are prepaying or bringing their own hardware. |
The delivery numbers back it up. Oracle brought 850 megawatts online and shipped more than 300,000 GPUs in three months — nearly 3x what it delivered in all of Q4. GPU utilization ran at 97.9%. |
And when older contracts came up for renewal, Oracle resold that capacity at a 20% premium. Most of those chips are four years or older. |
That detail undercuts the entire bear case. The argument against AI infrastructure is that the hardware goes obsolete in a few years. Oracle just repriced four-year-old GPUs 20% higher. |
The spending is enormous. Capex hit $28.5 billion in the quarter alone, free cash flow is negative $5.4 billion, and the company carries $125 billion in debt. |
Now look at what you're paying for it. |
Oracle raised full-year guidance to at least $90 billion in revenue — 34% growth — and $8.10 in adjusted earnings per share. |
Shares are trading at around 20x forward earnings. |
A company growing revenue better than 30% with a $664 billion backlog trades at roughly a market multiple. Wall Street's average target is $241.43, or 58% above the recent share price. |
Two of the biggest AI companies – Anthropic and OpenAI – are sparking huge demand for AI compute. And Oracle is one of America’s leading cloud companies that’s developing the datacenters. |
Go here for details on the upcoming IPOs – and how to invest today. |
Ian Wyatt
Editor, Daily Profit |
0 التعليقات:
إرسال تعليق