Core Insights - The tech sector is experiencing significant scrutiny, particularly regarding rising debt levels and market perceptions of companies like Oracle and Tesla [1][2][3] - Despite Oracle's strong revenue growth of 14% and substantial cash flow, the market reaction has been negative, indicating a disconnect between company performance and stock price [3][9] - Concerns about an AI bubble are prevalent, but the focus should be on companies with solid fundamentals rather than speculative names [7][10] Company Performance - Oracle's cloud revenue is approaching 50% of total revenues, showcasing strong growth in its fastest-growing sectors [4] - The company has secured major contracts against competitors like Amazon and Microsoft, yet the market has not responded positively to these achievements [5][9] - Other companies like Broadcom and Sienna also reported bullish earnings, indicating a broader positive trend in the tech sector despite market skepticism [8][9] Investment Opportunities - Investors are encouraged to identify moments when company performance diverges from market sentiment, as these can present buying opportunities [10][12] - The price-to-earnings growth (PEG) ratio is highlighted as a more relevant metric for evaluating investment opportunities in the current market environment [15] - The ongoing AI buildout is expected to create substantial investment opportunities over the next several years, with trillions of dollars projected to be spent [16][23] Market Trends - There is a growing focus on free cash flow among tech companies, which has not traditionally been a primary concern for investors [20] - Concerns about capital expenditures and delays in data center buildouts are affecting stock prices, as seen with Oracle and Nvidia [21][24] - The long-term outlook for tech investments remains positive, with expectations of significant spending in data centers and AI infrastructure [23]

Is Oracle's spending getting out of hand?Shares of Oracle (ORCL 4.42%) are falling this week, down 12.9% as of 2:41 p.m. ET. on Friday. The drop comes as the S&P 500 and Nasdaq-100 lost 0.6% and 1.8%, respectively. Oracle reported mixed earnings on Wednesday for its second quarter, revealing that the company's artificial intelligence (AI) spending spree is rapidly accelerating. The report, along with Broadcom's earnings release the following day, was enough to reignite fears of an AI bubble.NYSE : ORCLOracl ...

Company Insights - Oracle is facing delays in the completion of data centers for OpenAI, pushing the timeline from 2027 to 2028 due to labor and material shortages, which has negatively impacted Oracle's stock performance [6][11] - Oracle's recent fiscal Q2 earnings did not alleviate concerns regarding its significant investments in AI, leading to a decline in stock value and raising more questions about its strategy [6][11] Market Trends - The Dow Jones and Russell 2000 indices have reached new highs, supported by Federal Reserve actions, while Oracle and Broadcom have negatively affected the technology sector [9] - There is a notable interest in marijuana stocks following reports that Donald Trump may ease federal restrictions, indicating potential market shifts [8]

CoreWeave - CoreWeave is highly leveraged, with a significant role in the AI data center buildout, and is expected to nearly triple its revenue in 2024, but this growth is driven by substantial debt [3][6] - The company has over $10 billion in long-term debt, requiring high-interest borrowing, and it pays six times its gross profit to service this debt [6] - CoreWeave's capital expenditures have exceeded its revenue for each quarter, with capex more than double its sales and six times its operating cash flow over the last 12 months [5][6] Oracle - Oracle is also relying on leverage for growth, particularly through its all-in AI strategy, which involves significant resource expenditure to meet the demands of AI customers like OpenAI [7][10] - The company has issued tens of billions of dollars in bonds this year, with credit default swaps reaching their highest levels since the 2007-08 financial crisis, indicating increased market risk [9] - Oracle's debt is primarily funding data centers for OpenAI, which is committed to paying Oracle at least $300 billion over five years, despite OpenAI's low annual sales and ongoing losses [10][11] Industry Outlook - Both CoreWeave and Oracle are seen as risky investments due to their heavy reliance on continued AI demand and the accumulation of expensive debt [12][13] - The current AI hype is compared to the dot-com bubble of the 1990s, suggesting that if the hype fades, these companies may struggle to thrive [12][13]

Trading in Oracle Corporation (NYSE:ORCL) is volatile on Friday. This follows yesterday's drop of almost 11%. The selling was triggered by a disappointing earnings report. • Oracle stock is among today’s weakest performers. Why are ORCL shares down?Some traders are now watching Oracle for a possible rebound. This is why it is the Stock of the Day.As you can see on the chart, the sell-off ended when the price dropped to around $191. There is a reason why there is support at this level. It had been a resistan ...

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of Oracle Corporation ("Oracle†or the "Company†) (NYSE: ORCL) investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN ORACLE (ORCL), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS. Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmi. ...

Sema Modi joining us with a statement from the company. Sema, >> uh, Kelly, we were just talking about [music] the story. Oracle spokesperson is refuting the Bloomberg story that Oracle is delaying some of the data centers it is developing for OpenAI. Uh, the spokesperson telling CNBC, "There have been no delays to any sites required to meet our contractual commitments and on and all milestones remain on track. We remain fully aligned with Open AI and confident in our ability to execute against both our con ...

Core Viewpoint - Oracle is refuting claims of delays in developing data centers for OpenAI, asserting that all contractual commitments and milestones are on track [1][2]. Group 1 - Oracle's spokesperson stated that there have been no delays to any sites required to meet contractual commitments with OpenAI [1]. - The company remains fully aligned with OpenAI and is confident in executing future expansion plans [1][2]. - This situation pertains to Oracle's significant $300 billion deal with OpenAI [1]. Group 2 - Following Oracle's statement, the stock experienced a slight recovery, though it was still down approximately 2.8% [2][3]. - Oracle's credit default swaps have shown a loose correlation with the stock's performance [3].

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Oracle Corporation ("Oracle†or the "Company†) (NYSE: ORCL) on behalf of investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON ORACLE (ORCL), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS. What Is The Investigation About? On December 10, 2025, Oracle reported second quarter earnings, including that the. ...

Core Viewpoint - Oracle's delay in data center buildouts for OpenAI until 2028 raises concerns about investment returns and market stability, leading to increased market skittishness, particularly affecting tech stocks like Oracle and others in the AI sector [2][11][21]. Company Analysis - Oracle is facing scrutiny due to its $300 billion deal with OpenAI, with market reactions indicating sensitivity to any delays in the project [11][12]. - The company has seen a significant increase in data center leases, which may necessitate earlier access to debt markets than previously anticipated [11]. - Credit default swaps (CDS) for Oracle have surged, reflecting market concerns about the company's financial stability and the potential need for financing [12][19]. Industry Context - The broader market is experiencing nervousness regarding AI investments, with delays in projects like Oracle's potentially leading to overcapacity in data centers by 2028 [6][8]. - Investors are wary of the long-term demand for data centers, with private credit managers expressing reluctance to lend in this sector due to uncertainty about future capacity needs [7]. - The current situation is reminiscent of the telecom buildout in the late 1990s, which resulted in prolonged periods of overcapacity [8][9].