Oracle’s AI Dilemma: Record Contracts Clash With Shrinking Profitability
Published on 10/12/2025 at 15:36 | Redaktion boerse-global.de
The artificial intelligence boom is showing its first signs of strain at one of its biggest beneficiaries. Oracle finds itself navigating a complex landscape where analyst optimism clashes with concerning profitability metrics in its cloud computing division. The technology giant faces a critical test of its business model as it balances enormous growth potential against troubling cost structures.
Market experts remain bullish on Oracle’s prospects, with Citi raising its price target to a record $415—approximately 40% above current trading levels. This optimism stems from an astronomical $455 billion backlog of contracted business, which surged by 359% in the most recent quarter. The company has secured four separate billion-dollar agreements with three different clients, demonstrating robust demand.
CEO Safra Catz predicts the... Read more...
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
