Recently, Oracle announced the largest financing plan in its history—raising $45-50 billion through a combination of equity and debt—breaking the market's silence and causing its stock price to rebound strongly yesterday.

The question arises: previously, when Oracle raised funds, its stock price fell. Why is it rising now? Has Oracle reached the point where it's time to enter the market in batches?

I. Breaking the Deadlock: $50 Billion to Solve the "Urgent Need" for Expansion

Previously, Oracle's situation could be described as a "sweet trouble": on one hand, it was receiving large orders from top-tier AI clients like OpenAI and Meta, even signing over $450 billion in backlog contracts. On the other hand, it was a case of "a clever housewife cannot cook without rice"—lacking sufficient funds to build data centers and fulfill order commitments.

The market's acceptance of Oracle's $45-50 billion equity and debt financing plan this time is primarily due to two reasons: First, the funding anxiety is resolved, and future expansion expectations are very clear. Second, the market previously believed its debt credit rating was poor and worried it couldn't raise funds. Now, a single funding round solves capital expenditure for several years. Third, of course, the stock has fallen a lot, and valuations are relatively low.

After this funding, Oracle will be able to fully advance the expansion of its AI cloud infrastructure (OCI), fulfill major client contracts, and escape the dilemma of "having orders but no production capacity."

II. Deep Dive into Fundamentals: The Confidence from a $523 Billion Backlog

In fact, many in the market understand that although Oracle's stock price has been falling continuously, there is essentially nothing wrong with the company. Its core value remains intact, and its core logic is even one of high growth:

1. A Terrifying Backlog (Remaining Performance Obligation - RPO): The total has reached $523 billion, and the recognition pace is highly "certain": it will gradually be recognized as revenue over the next 5 years. This long-term transparency is highly attractive among tech giants.

2. Supply-constrained Cloud Infrastructure (OCI): Multi-cloud database business surged by 817%. The current contradiction is not a lack of buyers but limited production capacity. As long as data centers are built quickly, performance will be released quickly.

3. A Solid Cash Flow Moat: Extremely high renewal rates for traditional databases and application software provide Oracle with the stable "cash cow" needed for its transformation into an AI cloud.

Overall, from a valuation perspective, Oracle is currently fairly priced, while its potential growth space may be significant. This mismatch and oversold zone provide an opportunity for left-side traders to gradually enter the market. If you missed the surge in 2025, the current pullback might be the "second boarding pass" offered by the AI supercycle. Although financing completion ≠ all negative news is exhausted and a reversal is certain, Oracle remains one of the few players in the software industry that can tell a compelling story of "revenue acceleration + EPS growth."

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