Tag Archives: Mirror Review

Two days ago I saw two things close together. The first one was a Bloomberg terminal with nearly everything in red, even player like Oracle and Google were in the red. Not sure what brought it on, oil price, a clown in Washington DC setting the buildings on fire or perhaps someone in California doing something similar. The reason is unknown to me. On that same day an article (at https://www.mirrorreview.com/news/oracle-earnings-reveal-contract-backlog/) by the Mirror Review gives me ‘Oracle Earnings Reveal $553B Contract Backlog Due To Massive Cloud Demand’, now I do not know this source, but the two don’t make sense. Oracle has a $553B backlog (which is nice as I am looking for a job), but this sets two parts in motion against one another. So if there is an outstanding pipeline worth half a trillion dollars. There should be no red mention for Oracle, but that might be my non-economic side taking considerations in its own hands. 

So when we see “Oracle generated $17.2 billion in revenue, representing a 22% increase from the same quarter last year. Profit also improved, with earnings per share reaching $1.27, up 24% year over year. Cloud services were the main growth engine. Oracle’s cloud revenue reached $8.9 billion, growing 44% compared with last year.” The setting of Bloomberg red makes no sense to me and I wonder if there is orchestration in play. Don’t sign off yet, there is additional evidence. MorningStar (at https://www.morningstar.com.au/stocks/oracle-earnings-solid-execution-secures-revenue-target-mitigates-investor-concerns) gives is ‘Oracle earnings: Solid execution secures revenue target and mitigates investor concerns’ another statement that makes no sense, in light to a workable half a trillion dollar pipeline. Here we see “We are content with Oracle’s pace to expand its data center footprint. Demand for AI training and inference continues to outgrow supply, which supports our accelerating growth outlook for Oracle Cloud Infrastructure. OCI revenue should grow 77% in fiscal 2026 and 117% in fiscal 2027. Ninety percent of the 400-megawatt data center capacity Oracle delivered in the quarter was on or ahead of schedule. Considering the scale of OCI’s buildout, a strong record of on-time delivery is evidence of solid execution that should maintain customer trust and enable faster time to revenue.” As well as “We raise our fair value estimate for narrow-moat Oracle to $220, from $215 previously, based on higher-than-expected near-term demand for AI compute. Shares look undervalued following the stock’s 8% after-hours rally. Clarity around Oracle’s funding and market demand can mitigate investor concerns around OCI’s future growth. However, we reiterate our Very High Morningstar Uncertainty Rating for Oracle, as the demand and competitive landscape for AI cloud can change rapidly over the long term. Our base case assumes that AI infrastructure will continue to see high demand that allows Oracle to reach its $225 billion revenue goal by fiscal 2030. In this case, there is a clear path for Oracle stock to converge with our fair value estimate as a result of on-time capacity delivery each quarter.”

So, how does “our fair value estimate” make sense? What is it based on? There is also the setting of “we reiterate our Very High Morningstar Uncertainty Rating for Oracle” It sounds like orchestration by a Wall Street party. How can any firm that sets over half a trillion pipeline to this? Lets face the simple fact that this is out of reach for a player like Microsoft who ‘gives’ us “Microsoft reported a record annual revenue of $281.7 billion for fiscal year 2025” it might not be bad (me thinks) but it is merely half the revenue that Oracle has in its pipeline. And I reckon that this is merely the beginning. As places like the UAE has the Iranian stage, banks and several others need a clear line of communication via service centers, call centers and customer care and as I see it, Oracle is the best in these data vaults as I see it, the pipeline might grow in several directions because it is not just the UAE, I reckon that organisations in Europe and Japan will have similar settings soon enough.

And as we see other sources giving us “Remaining performance obligations, which is a useful metric when we want to gauge how revenue might be developing in the near future, grew by as much as 325% year-over-year. Looking forward to Q4, ORCL expects revenue to keep growing by as much as 18% to 20%, while for fiscal 2026 they expect total revenue to be $67 billion and in fiscal 2027 to be $90 billion. Client concentration in the backlog—meaning OpenAI—remains a concern, however.” I feel that there is orchestration, but it is a mere feeling. I lack the economic education to make sense of this. But one would agree that a $553B pipeline (read: backlog) implies that the need for Oracle is high and I reckon it will be growing even more soon enough, but that boat part is a presumptuous setting, not because there are others (like Snowflake), but the track record of Oracle speaks for itself and even if Snowflake has a great track record, these organisations go with what is safe and Oracle tends to be the safe route that large organisations ‘value’, but that might be merely my insight into this setting.

Have a great day.