Oracle's more-than-$30B AI cloud contracts, $664B backlog lift premarket shares
Oracle just surprised Wall Street with solid quarterly results, sending its shares up 5.5% in premarket trading on Friday.
The company scored more than $30 billion in new AI cloud contracts this quarter, pushing its revenue backlog to a massive $664 billion, well above what analysts expected.
This boost helped calm worries about Oracle's big spending on AI and past performance.
Oracle could gain $24B market value
Even with ongoing data center delays, Oracle's numbers eased concerns about turning backlog into real revenue.
While the stock is still down more than 21% this year (compared with the S&P 500's nearly 11% rise), Friday's jump could add around $24 billion to Oracle's market value.
Oracle valued lower than Microsoft, Amazon
Oracle trades at a lower earnings multiple than Microsoft and Amazon, making it appealing for investors looking for value in the crowded cloud space.
The latest results show Oracle's backlog is moving closer to its revenue, even as it navigates heavy investments and industry challenges.