Why Oracle Stock Popped Today

ORCL jumped 4.5% after Citigroup published a bullish call arguing the stock's 54% drop from its June-to-July peak creates a buying opportunity. The firm sees Oracle's $85 billion backlog as sufficient to cover near-term cash requirements despite projected negative free cash flow of $90 billion over the next two years tied to AI infrastructure buildout.

Citi projects ORCL's GAAP profits could triple or quadruple by 2030, driven by what the firm describes as insatiable demand for AI services. The bank set a $330 price target on the stock.

The note directly addresses investor concerns around Oracle's aggressive capital spending on cloud and AI infrastructure, which has weighed on the stock. Citi's view hinges on Oracle's ability to convert its contracted backlog into revenue fast enough to fund the infrastructure expansion without materially pressuring the balance sheet.