Core Viewpoint - The latter stages of a bubble are often the most advantageous time for investors to be engaged in the market [1] Group 1 - Investors face a dilemma as the best investment opportunities may arise during the final phases of a market bubble [1]

The financial markets were rattled on Thursday, 11 December 2025, as Oracle Corporation's stock plummeted by as much as 11.5 per cent in premarket trading.The sell-off was triggered by the release of the company's Q2 2026 earnings report the previous evening, Wednesday, 10 December 2025, which failed to meet Wall Street's lofty expectations.The plunge, which occurred in the premarket on the stock exchange, immediately sent shockwaves through the tech-heavy Nasdaq, creating a ripple effect that wiped more th ...

Core Viewpoint - Oracle's disappointing Q2 2026 earnings results have led to a significant drop in its stock price, impacting the broader tech and AI sectors [2][3][8] Financial Performance - Oracle reported non-GAAP earnings per share (EPS) of $2.26, a 54% increase, and total revenue of $16.1 billion, a 14% increase [6] - Analysts had expected total revenue to be higher at $16.21 billion, leading to investor disappointment despite the EPS beating expectations [3] Market Reaction - Oracle's stock price fell over 12% to $196.25 per share following the earnings report [8] - Major chip companies in the AI space experienced stock price declines, including AMD, Arm, Broadcom, Intel, Micron, NVIDIA, Qualcomm, and TSMC, with drops ranging from 0.9% to 1.4% [7] Industry Concerns - The announcement of new agreements with AI investors like Nvidia and Meta raised concerns about circular spending in the AI industry, contributing to fears of an AI bubble [4] - Oracle's remaining performance obligations increased to $523 billion, but the circular spending concerns have renewed skepticism among investors [4]

Core Viewpoint - Oracle's disappointing Q2 2026 earnings results have led to a significant drop in its stock price, impacting the broader tech and AI sectors [2][3][8]. Financial Performance - Oracle reported non-GAAP earnings per share (EPS) of $2.26, a 54% increase year-over-year, and total revenue of $16.1 billion, up 14% [6]. - Despite beating EPS expectations, Oracle's total revenue fell short of analyst forecasts of $16.21 billion, contributing to a 12% decline in its stock price [3][8]. Market Reaction - Following Oracle's earnings report, major chip companies in the AI space experienced stock price declines, including Advanced Micro Devices (down 1.2%), Arm Holdings (down 1.2%), and Nvidia (down 1.3%) [7]. - Broader tech stocks also faced declines, with Alphabet down 0.5%, Amazon down 0.7%, and Microsoft down 0.6% [10]. Industry Concerns - Oracle's new agreements with AI investors like Nvidia and Meta have raised concerns about circular spending in the AI industry, which could indicate a potential bubble [4]. - The total remaining performance obligations for Oracle increased to $523 billion, but investor fears about the sustainability of AI investments have intensified [4].

Core Insights - Concerns about an AI bubble are rising, yet major private investors remain optimistic about their investments in data centers and AI technology [1][2] Investment Sentiment - Blackstone's President Jon Gray highlighted that data centers are the firm's biggest moneymaker, while Ares CEO Michael Arougheti noted that international data center investments are exceeding expectations and enhancing revenue forecasts [2] - Blue Owl co-CEO Doug Ostrover expressed strong confidence in data center investments, indicating a positive outlook for continued investment growth [2] Demand and Supply Dynamics - Apollo CEO Marc Rowan emphasized the global demand for data center capacity, stating that major users require more compute resources, but supply is constrained by natural, energy, and regulatory limits [3][4] - Ostrover pointed out an unprecedented supply-demand imbalance in the market, with demand accelerating while supply remains stagnant [4] Risk Considerations - Rowan discussed the risks associated with lease renewals for data centers, indicating a preference for lease-up risk over renewal risk, as the future of energy and compute usage remains uncertain [5] - The variability in energy usage projections for 2030 raises concerns about the reliability of long-term investments in data centers [5] Lease Quality and Investment Strategy - Blackstone focuses on long-term lease data centers, only commencing construction with a 15-plus year lease from large market cap companies, thereby mitigating risk [6] - Blue Owl's strategy includes securing favorable leases with high-quality tenants, transitioning from traditional tenants to major tech companies like Microsoft and Google, which enhances investment security [9][10] Financial Returns - Blue Owl's triple-net-lease business model, where tenants cover taxes, insurance, and maintenance, has historically yielded over 20% returns, and the firm expects similar terms with top-tier tenants [8][9] - Even in scenarios where facilities may have no residual value at the end of their lives, Ostrover believes returns can still be achieved, indicating a robust investment strategy [10]

Key Takeaways Shares of Oracle were down nearly 14% in recent trading. AI hardware makers Advanced Micro Devices (AMD), Micron Technology (MU), and Broadcom (AVGO)—which is set to report earnings after the closing bell today—also lost ground. Oracle's (ORCL) stock tumbled Thursday, dragging other tech stocks down along with it, a day after the cloud computing giant posted sales that missed analysts' estimates. Oracle said new agreements with AI heavyweights Meta Platforms (META) and Nvidia (NVDA) helped gro ...

Goldman Sachs Vice Chairman Robert Kaplan discusses dissention at the Federal Reserve and how he sees the central bank through the end of Fed Chair Jerome Powell's tenure and beyond. Kaplan also touches on the factors driving US inflation and why he believes there is not an AI bubble. ...

Market Analysis by covering: S&P 500, Oracle Corporation, S&P 500 Futures. Read 's Market Analysis on Investing.com ...

Core Insights - Oracle has secured new agreements with AI companies Nvidia and Meta, contributing to a record backlog of $523 billion, but its fiscal second-quarter revenue of $16.06 billion fell short of analysts' expectations despite a 14% year-over-year increase [2][3] - The stock price of Oracle dropped 11% in after-hours trading following the earnings report, reflecting ongoing investor concerns about the sustainability of demand for its AI offerings and reliance on a few major customers in the AI sector [3][4] - Oracle's forecast for adjusted earnings per share for the third quarter is between $1.70 and $1.74, aligning with analysts' estimates, and it anticipates revenue growth of 19% to 21%, which exceeds projections [5] Stock Performance - As of the close on Wednesday, Oracle's shares have decreased approximately 35% from their September highs, although they remain up about 33% year-to-date, significantly lower than the 100% gain observed in September [6]

ORACLE. THEY'VE ISSUED $108 BILLION IN DEBT THIS YEAR. THAT IS A 500% INCREASE FROM JUST LAST YEAR.AND WITH THE FED ENDING QUANTITATIVE TIGHTENING LAST WEEK MY NEXT GUEST SAYS SIGNALS AROUND WHAT COMES NEXT ARE JUST AS IMPORTANT AS THE POLICY RATE. SOUNDS LIKE OUR EARLIER DISCUSSION LOW TONY IS FOUNDING MANAGING PARTNER AT PLEXO CAPITAL AND A CNBC CONTRIBUTOR. IT'S GOOD TO HAVE YOU HERE.THANKS FOR HAVING ME. SO THE FED, SOME SAY, NEEDS TO MAKE SURE THAT IT DOESN'T FURTHER STOKE AN AI BUBBLE HERE. DO YOU SHA ...