【Week 6 - Patience finally paying off】

Oracle is trading at a more reasonable valuation of around 34.7x earnings and 8.7x sales. Analysts expect the company's revenue to grow around 20% year over year to $19.1 billion in fiscal 2026's Q4. In fiscal Q3, revenue rose 21.7% year over year, while adjusted operating margin was 43%. The remaining performance obligations also jumped 325% to $553 billion, giving the company unusually strong visibility into future AI cloud demand. However, the risk is that Oracle's AI backlog still must be converted into working data center capacity. The company has estimated fiscal 2026 capital expenditures to be around $50 billion. Oracle has also announced plans to raise $45 billion to $50 billion in 2026 to fund data center expansion. Once this data center backlog starts coming into play, we could then see the company profiting substantially from the cloud business as well. As the tech & software sector slowly recovers, I'll continue to stay patient on Oracle. @Bridge Buzz SG