Oracle Slides 4.1% as Cowen Cuts Target Despite $638 Billion Backlog
Bubble signal: +1 · Overheating evidenceRelevance 75MarketsUS
Source: NewsData: AI bubble (EN) · Published 2026-09-01
Summary
TD Cowen lowered its target to $240 but retained its Buy rating as Oracle's AI expansion pushed free cash flow deeply negative. Despite a $638 billion backlog, the market remains concerned about returns on AI investment.
Bubble analysis
Oracle's heavy spending on AI infrastructure has driven free cash flow deeply negative, and while its backlog is large, it hasn't yet translated into profits. This reflects a classic pattern in the AI investment boom where capital expenditure far outpaces current profitability, fueling bubble concerns.
#ai#oracle#free-cash-flow#backlog
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