On October 7, 2024, Oracle’s CEO, Safra A. Catz, revealed significant growth for the company, but the latest analyst notes raised concerns about reliance on a single client, OpenAI. Oracle shares fell 6% after previously hitting a record high. The company’s stock experienced volatility following Catz’s announcement of four multi-billion-dollar contracts in one quarter, leading to a remarkable 359% year-over-year increase in its remaining performance obligation, now totaling $455 billion. Oracle projects its cloud infrastructure revenue will grow 14-fold by 2030. Despite a strong fiscal first quarter, including a remarkable 30% stock surge post-announcement, market sentiment shifted when reports surfaced about OpenAI potentially investing $300 billion in Oracle over five years. This concern was echoed by analyst Gil Luria, who noted, “Our enthusiasm for Oracle’s backlog announcements is significantly tempered by the report that it came almost entirely from OpenAI.”
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