Oracle(US:ORCL) Hua Er Jie Jian Wen·2025-11-14 00:17Core Insights - The speculative hype surrounding themes like artificial intelligence, quantum computing, and renewable energy is rapidly cooling, with a collective market value drop of approximately 33% for companies like Oklo, IonQ, and CoreWeave since mid-October [1] - The onset of the third-quarter earnings season has prompted investors to reassess the high valuations of companies with little to no profitability, as 82% of S&P 500 companies reported better-than-expected earnings, shifting funds towards fundamentally strong value stocks [2][3] - The average decline of about one-third for a group of 13 speculative stocks, which had previously surged nearly 200% from July to mid-October, highlights the stark contrast between their performance and that of larger, more stable companies [3] Market Dynamics - The iShares MSCI USA Value Factor ETF (VLUE) has risen approximately 6% since the peak of speculative stocks, indicating a shift from high-risk narrative-driven investments to solid value investments [4] - Oracle's stock experienced volatility due to concerns over its credit risk, as its reliance on a high-spending client, OpenAI, raised questions about its debt repayment capabilities [5] - Investors are increasingly demanding higher risk premiums when a company's survival depends on another high-risk startup, as seen in the bond issuance requirements for Applied Digital compared to its peers [6][7]