Oracle's shares gained 3% in early trading on Friday after a $26 billion jump in revenue backlog eased some concerns around its massive debt-driven spending spree, but analysts said the company's cash flow recovery is still a long way off.
Roughly half of the $664 billion in its backlog is expected to convert into sales within the next 36 months and much of its newly contracted revenue will not require its own capital, Oracle said, as it relies on client prepayments and customers' own chip supply to build out capacity.
