From a 50% plunge to a single-day surge of more than 10%, Oracle ($ORCL ) just delivered a classic short squeeze from a deep valuation trough.
Over the past few months, Wall Street’s biggest fear was that Oracle was taking on too much debt to race ahead with AI data center construction. The company posted a massive $24 billion cash flow deficit in a single quarter, and its credit rating was even pushed close to junk status.
But at its Investor Day just now, management offered a decisive vote of confidence:
1. A clear cash flow timeline: Oracle pledged to turn free cash flow fully positive in the second half of fiscal 2028 and reach at least $30 billion in fiscal 2029;
2. AI spending to peak and decline: Capital expenditures are expected to peak in 2028, with customer prepayments helping to fill the gap and ease fears of endless debt issuance;
3. A deep integration with OpenAI: Oracle AI Workspace was unveiled, directly connecting ChatGPT with enterprise data infrastructure.
On the charts, the high-volume breakout platform at $132–$135 has now been confirmed as a medium-term bullish support zone. The stock hit $148.50, where it ran into selling pressure from trapped holders, and is now seeing elevated-level turnover around $141–$144.
Now that fears of a funding crunch have been thoroughly dispelled, do you think Oracle at $140 has reached the end of its rebound, or is this the start of a new round of mean reversion?
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Oracle ($ORCL) surges 10%+ to $144 as Investor Day guidance promises $30B free cash flow by FY29, fully dismantling debt and AI capex insolvency fears.
#TradFi #BinanceSquare #Earnings
Over the past few months, Wall Street’s biggest fear was that Oracle was taking on too much debt to race ahead with AI data center construction. The company posted a massive $24 billion cash flow deficit in a single quarter, and its credit rating was even pushed close to junk status.
But at its Investor Day just now, management offered a decisive vote of confidence:
1. A clear cash flow timeline: Oracle pledged to turn free cash flow fully positive in the second half of fiscal 2028 and reach at least $30 billion in fiscal 2029;
2. AI spending to peak and decline: Capital expenditures are expected to peak in 2028, with customer prepayments helping to fill the gap and ease fears of endless debt issuance;
3. A deep integration with OpenAI: Oracle AI Workspace was unveiled, directly connecting ChatGPT with enterprise data infrastructure.
On the charts, the high-volume breakout platform at $132–$135 has now been confirmed as a medium-term bullish support zone. The stock hit $148.50, where it ran into selling pressure from trapped holders, and is now seeing elevated-level turnover around $141–$144.
Now that fears of a funding crunch have been thoroughly dispelled, do you think Oracle at $140 has reached the end of its rebound, or is this the start of a new round of mean reversion?
---
Oracle ($ORCL) surges 10%+ to $144 as Investor Day guidance promises $30B free cash flow by FY29, fully dismantling debt and AI capex insolvency fears.
#TradFi #BinanceSquare #Earnings