AI is a Bubble??? Nope we are in the early stages (Patreon)

Oracle shares rose sharply in late trading Tuesday after the software firm reported a mixed earnings report but revealed a significant increase in its backlog of contracted work.

TLDR

+359% increase in contracted revenue but not fulfilled or recognized.

As we continue to reiterate, we are still so early in the AI Revolution.

Earnings were poor

Adjusted earnings-per-share for Oracle's fiscal first quarter rose to $1.47 versus Wall Street's consensus estimate of $1.48, according to FactSet, and up from $1.39 last year. Revenue for the quarter reached $14.9 billion, behind expectations for $15.0 billion, and up 12% over last year.

Oracle also missed expectations for cloud services revenue growth, a key metric. Guidance for the second quarter was also thin.

But the headline for many was Oracle's contracted backlog rising to $455 billion, up from just $138 billion in the fourth quarter. The figure is indicative of the intense demand for renting AI servers in the cloud, a business that the firm, chaired by Larry Ellison, has only recently entered after years in the database market.