massive cash generation can treat a delayed or renegotiated contract as a rounding error. Companies whose growth thesis depends on a small number of anchor customers absorbing massive new capacity are in a different position entirely.An investor who bought Oracle at the start of 2026 is sitting on a year-to-date decline of 23.25%, with shares trading around $149.77. That drop reflects the market repricing exactly the risk Bosa described: if anchor tenants redirect capacity to newer sites with newer chips, t ...

The financial mechanic at work here is straightforward. When a company signs a cloud infrastructure contract, it books a Remaining Performance Obligation (RPO), which is committed revenue that hasn't been recognized yet because the service hasn't been delivered. Oracle's RPO surged 438% to $523 billion in Q2 FY2026. That number sounds extraordinary. But Oracle's quarterly revenue is roughly $16 billion, which means the company is sitting on years' worth of contracted work. The question is whether those cont ...