Nelson: ORCL "Bleeding Cash," Valuation "Blind Spot" in Markets

Market Overview - The market is currently in a holding pattern due to an upcoming Federal Reserve decision, with positive signals from rising earnings and declining rates, suggesting potential for stock growth if a recession is avoided [2][4] - Valuation support has diminished, which complicates market predictions, as valuation is not a reliable timing tool [2][5] Federal Reserve Insights - There is a general desire for the Federal Reserve to lower interest rates, which are currently seen as too restrictive [4] - Market expectations indicate a potential 3% Fed funds rate by this time next year [4] Company Analysis: Oracle - Oracle's growth is significant, with projections of 70% annualized growth in a young industry, but concerns arise from a $300 billion order from OpenAI, which is not yet profitable [7][8] - Oracle is experiencing negative free cash flow, which is expected to continue for the next couple of years, warranting caution for investors [8] Company Analysis: DataDog - DataDog is positioned well in the software space, offering a mission-critical application with a unique pricing model based on workloads and data consumption, which may be essential for navigating the AI era [10][11] Company Analysis: SLB - SLB, formerly Schlumberger, is evolving from a traditional oil services company to an embedded AI player, partnering with Nvidia to enhance its digital services platform [12][13] - The company currently trades at a 12 times multiple with a 3% dividend, with expectations for significant multiple expansion [13] Company Analysis: Morcore - Morcore is highlighted as a strategic investment in the data center sector, operating on an asset-light model that minimizes balance sheet risk while managing projects effectively [14] Investment Strategy - A diversified portfolio is recommended, avoiding over-reliance on high-performing stocks like the "Magnificent Seven," as future performance is uncertain [15][16] - The software sector is identified as particularly challenging due to changing business models and potential reductions in workforce, which could impact sales [17]