The author says he bought more Oracle shares again, as the stock closed at $141.40, down 51.75% over one year and 26.49% year to date. He points to remaining performance obligations of $664 billion, up $209 billion year over year, and cloud infrastructure revenue that rose 121% to $7.39 billion. Oracle trades at a forward P/E of 18, below Microsoft's 25 and Amazon's 24, while paying a $0.50 quarterly dividend with a 1.48% yield. The main risk he watches is negative free cash flow of -$5.40 billion, as capex rose 235.2% to $28.50 billion, interest expense climbed 55% and a $20 billion equity issuance diluted his stake. He argues that operating cash flow rose 183.82% to $23.10 billion and that most new contracts require no additional Oracle capital, which keeps his buying thesis intact.
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