Oracle's Blowout Quarter Widens the Gap With Michael Burry's Short Bet

Bank of America reiterated a bullish rating on Oracle after the company posted one of its strongest quarters on record, widening the gap with investor Michael Burry, who disclosed a short position in the stock at $144.63 in August, according to TheStreet.

Oracle's fiscal first-quarter revenue rose 29.6% year over year, beating Wall Street's 28.2% estimate, according to a BofA note dated September 11. Cloud infrastructure revenue, the business that rents out AI computing power, more than doubled, climbing 121% against a 115% consensus estimate.

The beat came from added capacity rather than just demand: Oracle brought 850 megawatts of new data center power online during the quarter, nearly triple the prior quarter's pace. Management also raised its full-year revenue outlook to more than $90 billion, with adjusted earnings guidance of $8.10 a share.

Despite the strong results, Oracle shares fell following the report, TheStreet noted, even as BofA's note reflected some of the most bullish sentiment yet on the stock.