Why Oracle Stock Popped Today

Oracle stock jumped 4.5% after Citigroup issued a bullish note arguing that Oracle's 54% decline from June to July peak represents an extreme dislocation and buying opportunity. Despite concerns about massive AI infrastructure spending and negative free cash flow projections of $90 billion over the next two years, Citi believes demand for AI services is insatiable and Oracle's $85 billion backlog can cover cash needs. Citi estimates Oracle's GAAP profits could triple or quadruple by 2030, with a potential stock price target of $330 per share.