FULL BREAKDOWN: Why Oracle's Stock is Exploding

Name: FULL BREAKDOWN: Why Oracle's Stock is Exploding
Uploaded: 2026-03-11T20:17:16Z
Channel: TBPN

March 11, 2026

TBPN host

Watch on YouTube oracle earnings ai infrastructure cloud computing gpu demand capex spending openai partnerships large language models

TBPN breaks down Oracle's earnings beat and why its stock surged 10% following the company's announcement of aggressive AI infrastructure expansion. The episode examines Oracle's $553 billion backlog in remaining performance obligations, its profitable infrastructure business serving OpenAI and Meta, and addresses bear thesis concerns about the financial viability of Oracle's massive GPU buildout and capex spending.

Key takeaways

• Oracle's infrastructure business grew 84% this quarter, beating analyst expectations of 79%, driven by major deals with OpenAI and Meta who lack their own cloud platforms like AWS, Azure, or GCP.
• The company increased its remaining performance obligations (RPO) backlog to $553 billion, signaling strong customer demand and confidence that Oracle can deliver capacity on schedule with 90% of deliveries on or ahead of schedule.
• Token consumption per user is growing exponentially even as consumer AI adoption plateaus, with reasoning models and AI agents creating a "double exponential" compute demand that justifies Oracle's aggressive $50 billion annual capex spending.
• Oracle's gross margins improved to 32% despite massive infrastructure spending, proving the business is profitable from day one and negating fears that Oracle would face a cash flow squeeze from GPU depreciation or delayed monetization.
• Management addressed the "SAS apocalypse" thesis by demonstrating that Oracle is using AI coding tools internally to build new products faster with smaller teams, rather than being disrupted by them.