'Fast Money' traders talk Oracle hitting a six-month low

Company Overview - Oracle shares have declined to their lowest level since June, despite a positive outlook from analysts at City, who believe growth remains on track and concerns over data center delays are exaggerated [1] - The company has a market capitalization of $36 billion and $18.5 billion in debt, with a couple of billion in cash, but is currently not profitable, indicating potential pressure on future profits [4] Market Sentiment - There is a noticeable lack of confidence in Oracle's growth story, as evidenced by the widening of credit default swaps (CDS) and the continued decline in stock price despite the denial of negative reports [2] - The sentiment shift in the market has been rapid, initially influenced by developments in AI companies like OpenAI and Nvidia, and now affecting major players such as Microsoft, Meta, and Amazon, all of which have underperformed compared to the S&P and NASDAQ [5] Data Center Buildout Concerns - Analysts anticipate a slowdown in the buildout of data centers, which is critical for Oracle's business model, leading to a challenging environment for the company [2][4] - The current market conditions suggest that Oracle's performance is now a "prove me" story, contrasting with its historically predictable business model [7] Stock Performance - Oracle's stock has seen pronounced declines, with a drop of at least 10% from its highs, raising questions about the underlying reasons, including potential year-end effects and broader market trends [6] - The stock is currently trading near its previous all-time high of approximately $185-190 from December of the previous year, which may act as a support level if it can stabilize around these prices [9]