Oracle: Heavy Capex, Heavy Debt, Heavy Upside

Cyn Research743 FollowersFollow5ShareSavePlay(9min)CommentsSummaryOracle is no longer just a SaaS and database company. It is becoming a large-scale AI infrastructure provider, and that shift is already reaccelerating overall growth.The market’s biggest concern is debt, but Oracle’s large AI contracts are often backed by customer prepayments or customer-funded GPUs, which should reduce financing risk.At today’s valuation, ORCL stock already prices in a lot of fear around debt, dilution, and execution, while giving too little credit for Oracle’s long-term AI revenue opportunity.SlavkoSereda/iStock via Getty Images Introduction Oracle Corporation (ORCL) is a beta-positive technology stock that has significantly underperformed the broader S&P 500 index in the last couple of months. In fact, it is down more than 50% from its all-time highs back inThis article was written byCyn Research743 FollowersFollowHi! I'm a passionate investor who has been researching publically traded companies for over 6 years. My primary focus is on identifying great businesses at reasonable prices and holding them for the long term but I also dive into trend following strategies from time to time. While I have a slight bias toward technology companies, I maintain a broad perspective, including opportunities in crypto. I take a global approach to investing, occasionally seeking value beyond the U.S. market. Thanks for reading!Analyst’s Disclosure: I/we have a beneficial long position in the shares of ORCL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.