Oracle's $638 billion backlog remains the strongest argument for the long case. Fourth-quarter cloud infrastructure revenue accelerated to 93% year-over-year growth, and RPO increased by $85 billion in the final quarter alone. The question is whether the conversion of that backlog into cash flow can outpace the financing needs of the buildout. Ellison's own wealth will track the answer almost tick for tick.
Can Oracle turn its AI backlog into free cash flow fast enough to fund the next phase of expansion without further diluting shareholders or damaging its credit profile?
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