Oracle’s Oracle Cloud Infrastructure (OCI) revenue is growing at 66% year over year, surpassing competitors like AWS and Azure, fueled by massive AI contracts. However, the company is taking on significant debt and considering selling profitable units to fund its data center expansion, with a large portion of its backlog tied to OpenAI, whose financial stability is questioned. The article suggests that while Oracle is positioned for growth in the AI sector, the financial risks associated with its strategy and heavy reliance on OpenAI make it an unfavorable investment at this time.
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Should You Buy Oracle Stock Right Now?
Oracle’s Oracle Cloud Infrastructure (OCI) revenue is growing at 66% year over year, surpassing competitors like AWS and Azure, fueled by massive AI contracts. However, the company is taking on significant debt and considering selling profitable units to fund its data center expansion, with a large portion of its backlog tied to OpenAI, whose financial stability is questioned. The article suggests that while Oracle is positioned for growth in the AI sector, the financial risks associated with its strategy and heavy reliance on OpenAI make it an unfavorable investment at this time.