{
  "id": 3286256,
  "title": "Asymmetry Is The Reason I Will Not Stop Buying Oracle",
  "url": "https://urgent.news/2026/08/25/asymmetry-is-the-reason-i-will-not-stop-buying-oracle",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-25T14:55:29.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/asymmetry-reason-not-stop-buying-145529158.html"
  },
  "original_language": "en",
  "account": "Oracle's $638 billion contracted backlog has surged by 363% year-over-year, making the stock an attractive option despite its current valuation. The stock trades at a forward P/E of 18, significantly lower than Microsoft's 24 and Amazon's 22. Oracle's multicloud AI database grew by 404% in Q4, and its databases are now hosted across AWS, Azure, and Google Cloud. The company's 31% revenue and 28% EPS growth CAGR through fiscal 2030 is a testament to its strong performance. However, Oracle carries $124.7 billion in debt and negative free cash flow, with $75 billion in pre-contracted FY2027 deals providing a cushion against execution risk. The analyst who predicted NVIDIA's rise in 2010 has named Oracle as one of his top 10 AI stocks, despite its absence from the list. Current stock price: $142.45, down 39.05% over the past year. Oracle's wide asymmetry in enterprise software makes it a compelling investment opportunity, with a forward P/E of 18 and a PEG of 0.83. The bear case revolves around potential AI capex demand slowdown, which could lead to execution friction and dilution. Nonetheless, paying Microsoft and Amazon's valuation multiples for lesser asymmetry is an option the reporter is avoiding. Management expects FY2027 revenue of $90 billion and non-GAAP EPS of $8.05, with prepaid contracts reducing Oracle's cash burden. Oracle's steady-state project ROIC is expected to be in the high 20s. The reporter holds a $2.00 annual dividend at a 1.41% yield while waiting for potential upside. The company's involvement in the data-center buildout, along with seven other suppliers, is detailed in a free AI infrastructure report.",
  "summary": null,
  "key_points": [
    "Oracle's $638 billion contracted backlog surged 363% year-over-year",
    "Multicloud AI database grew 404% in Q4, hosted across AWS, Azure, Google Cloud",
    "Oracle's wide asymmetry in enterprise software makes it compelling investment opportunity"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}