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Options Traders Are Betting Oracle Has Another Move Left
Yahoo Finance • • business
Key Points:
- Oracle Corp. is set to report its fiscal first-quarter earnings after market close on Thursday, with options traders anticipating significant stock movement.
- Shares rose 2.4% to $162.52 on Tuesday, driven by bullish call options activity, particularly around the $175 strike price, reflecting optimism about Oracle's cloud infrastructure growth.
- Oracle's cloud infrastructure revenue surged 93% to $5.8 billion last quarter, benefiting from increased AI-related spending, while the company holds $638 billion in remaining performance obligations.
- Despite generating $32 billion in operating cash flow in fiscal 2026, Oracle's free cash flow dropped to a negative $23.7 billion due to heavy investment in AI data centers.
- Investors are focused on whether Oracle's AI-driven cloud revenue growth can justify its substantial capital expenditures, with options traders betting on a potentially volatile stock reaction post-earnings.
