It has been about a month since the last earnings report for Oracle (ORCL) . Shares have lost about 4.6% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Oracle due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Oracle Corporation before we dive into how investors and analysts have reacted ...

Core Viewpoint - KKR & Co. Inc. is facing downward pressure on its stock price despite announcing a significant investment in Global Technical Realty, indicating potential market concerns about the company's financial strategies and performance [1][2]. Investment Details - KKR disclosed an additional $1.5 billion equity investment in Global Technical Realty (GTR), a European data center platform, with Oak Hill Capital committing approximately $400 million as a new investor [1]. - The investment is primarily financed through KKR's Global Infrastructure Strategy, which has allocated around $34 billion in digital infrastructure across 24 investments and over $20 billion in power and renewables [2]. Portfolio and Market Expansion - KKR's portfolio includes five data center platforms across the U.S., APAC, and EMEA, with a development pipeline of 12 GW, 12 fiber platforms serving nearly 30 million homes, and over 130,000 wireless sites across Europe and APAC [3]. - The new investments will support GTR's expanding development pipeline, focusing on new greenfield projects and market expansion in Europe, driven by increasing demand for AI-ready, high-density data center and cloud infrastructure [3]. Recent Acquisitions - KKR completed a major real estate acquisition in South Korea, acquiring the Cheongna Logistics Center in Incheon, and announced a $220 million growth investment in Premialab, a provider of data, analytics, and risk management solutions for quantitative investing [4]. Stock Performance - KKR shares are currently down 1.99%, trading at $133.09 at the time of publication [4].

Group 1: Oracle's Financial Performance and Market Reaction - Oracle's shares declined after missing Q2 revenue and earnings projections for fiscal year 2026, raising concerns about an AI bubble [1] - The company raised $18 billion in bond sales to finance its AI ambitions, leading to investor concerns about the increasing debt [2] - If Oracle's stock continues to decline, traders can utilize inverse ETFs like Direxion Daily ORCL Bear 1X ETFs to take bearish positions [3] Group 2: Broader AI Market Dynamics - Despite Oracle's challenges, Broadcom reported a 28% year-over-year revenue increase in Q4 for fiscal year 2025, indicating ongoing strength in the AI sector [4] - Broadcom's AI semiconductor revenue surged by 74% year-over-year, with expectations to double to $8.2 billion in Q1 2026 [5] - Traders can consider bullish positions in Broadcom through Direxion Daily AVGO Bull 2X ETFs, as well as broader tech sector bullishness via Direxion Daily Technology Bull 3X ETF [5]

MOSCOW, Dec 29 (Reuters) - A joint venture controlled by Russian billionaire Vladimir Potanin has acquired a 25% stake ​in IT infrastructure provider Selectel, one of the venture's ‌partners said on Monday, as Moscow seeks to boost development of home-grown artificial ‌intelligence models. Catalytic People, a joint venture between Potanin's holding company Interros and T-Technologies, the owner of online lender T-Bank, has purchased a 25% stake in Selectel, valued at some 16 billion roubles ($206 ⁠million ...

Core Viewpoint - Alphabet's acquisition of Intersect for $4.75 billion aims to enhance data center and energy infrastructure capacity, accelerating energy development and innovation [1][5] Group 1: Acquisition Details - The transaction includes Intersect's energy and data center projects currently in development or under construction through its partnership with Google [2] - Intersect will operate independently under its own brand and maintain a close relationship with Google's technical infrastructure team [2] - Google holds a minority stake in Intersect from a previous funding round [2] Group 2: Project Collaboration - The companies are collaborating on a co-located data center and power site in Haskell County, Texas [3] - Intersect will explore emerging technologies to diversify energy supply for Google's expanding data center needs [3] - Assets in Texas and California will not be included in the acquisition and will remain with a separate entity supported by TPG Rise Climate and others [4] Group 3: Strategic Alignment - Alphabet's CEO stated that the acquisition will help expand capacity and innovate energy solutions to support US leadership [5] - The acquisition aligns with Alphabet's strategy to collaborate with utilities to ensure energy supply for future data center growth without burdening electricity grid customers [5] Group 4: Energy Initiatives - The company is pursuing initiatives to responsibly increase energy capacity and commercialize advanced energy technologies [6] - Alphabet is utilizing AI tools to facilitate faster integration of new power plants into the grid and enhance efficiency in data center communities [6]

Core Viewpoint - Oracle is experiencing significant growth in its cloud infrastructure segment, driven by high demand from AI developers, but faces challenges in scaling its data center capacity to meet this demand [5][8]. Group 1: Data Center Capacity and Infrastructure - Oracle has rapidly expanded its data center capacity, with 147 regions operational and 64 more planned as of the end of its fiscal 2026 second quarter [1]. - The company’s data centers provide access to over 131,000 GPUs, enabling the handling of advanced AI workloads [2]. - Oracle employs proprietary RDMA networking technology, which enhances data transfer speeds, leading to potential cost savings for AI developers who pay for computing by the minute [3]. Group 2: Financial Performance - In the fiscal 2026 second quarter, Oracle reported total revenue of $16.1 billion, a 14% increase year-over-year, with cloud infrastructure revenue soaring by 66% to $4.1 billion [7]. - The company's remaining performance obligations (RPO) surged by 438% year-over-year to $523 billion, indicating strong demand for its services [8]. Group 3: Customer Concentration and Risks - Approximately $300 billion of Oracle's RPO is attributed to OpenAI, raising concerns about customer concentration risk, as OpenAI may not have the financial capacity to fulfill this commitment [9][10]. - Oracle's debt stands at around $108 billion, and the company is increasing its debt to fund further data center construction, which has contributed to investor skepticism [10]. Group 4: Market Position and Future Outlook - Oracle's market capitalization is currently about $550 billion, and it would need an 82% increase in stock price to join the $1 trillion club, requiring a near doubling of its earnings per share [13]. - Despite the challenges, Oracle's AI business is growing rapidly, suggesting potential for future growth, although it may not be the next company to reach the $1 trillion valuation [14].

Core Insights - Oracle's recent stock sell-off reflects concerns about the sustainability of its AI infrastructure investments despite strong revenue growth [1][2] - The company reported a 14% year-over-year revenue increase to $16.1 billion in fiscal Q2 2026, driven by a 34% rise in total cloud revenue [5][6] - Oracle's remaining performance obligations (RPOs) reached $523 billion, up 438% year-over-year, indicating strong long-term commitments from major clients [7] Financial Performance - Cloud infrastructure revenue surged 68% year-over-year to $4.1 billion, marking an acceleration from a 54% increase in the previous quarter [6] - Operating cash flow for fiscal Q2 was approximately $2.1 billion, but capital expenditures soared to about $12 billion, resulting in negative free cash flow of around $10 billion [9][10] - Total debt reached approximately $111 billion, significantly exceeding cash and cash equivalents of nearly $20 billion [11] Investment Outlook - Management has raised fiscal 2026 capital expenditure guidance from $35 billion to about $50 billion, indicating ongoing investment in AI infrastructure [10] - The stock is trading at a price-to-earnings ratio of about 35, reflecting market confidence in Oracle's ability to convert RPOs into revenue and profits [13] - The current market conditions present a potential buying opportunity for investors who believe in the long-term viability of Oracle's AI-driven cloud strategy [15]

Key TakeawaysOracle (ORCL) shares extended gains to 6% on December 18, buoyed by positive project updates and regulatory progress on its Michigan data center, despite recent investor anxiety over AI-related spending and financing challenges.President Donald Trump officially signed the Fiscal Year 2026 National Defense Authorization Act (NDAA) into law, authorizing a record $901 billion in military spending and including a 3.8% pay raise for troops.The Bank of Japan (BoJ) is set to raise its interest rates t ...

Oracle Corporation (NYSE:ORCL) is one of the best Reddit stocks to invest in right now. On December 11, KeyBanc lowered the firm’s price target on Oracle to $300 from $350 with an Overweight rating on the shares. Despite the optimism regarding prospects, the company’s recent results for FQ2 2026 fell short, specifically in the cloud division. Cloud revenue and gross margin missed expectations, and IaaS growth to $4.1 billion was slightly below the anticipated $4 billion. Although the total remaining perf ...

Oracle Corporation Conference Call Summary Company Overview - **Company**: Oracle Corporation - **Industry**: Software - **Headquarters**: Austin, Texas - **Employees**: Approximately 164,000 - **FY23 Revenue**: $50 billion - **Public Since**: 1986 Key Financial Highlights - **2Q/Nov Results**: - Revenue growth of 13% year-over-year - Cloud infrastructure growth of 66% - Revenue backlog increased by $68 billion, driven by Meta and Nvidia deals - **Future Revenue Guidance**: - FY26 revenue target remains at $67 billion - FY27 revenue guidance raised from $85 billion to $89 billion - **Earnings Estimates**: - FY27 revenue estimates increased from $83.6 billion to $87.9 billion - Non-GAAP EPS estimate raised from $7.71 to $7.80 Backlog and Revenue Conversion - **Backlog Growth**: - Investors are focused on converting backlog and capital expenditures into revenue - Current revenue growth of 13% aligns with previous year’s 9% - SaaS growth of 11% fell short of Oracle's guidance for acceleration - **Future Expectations**: - Anticipated acceleration in cloud infrastructure growth to over 80% in 3Q/Feb - Concerns about revenue upside being conservative or pressure in non-IaaS segments Debt and Margins - **Debt Levels**: - Total debt under $100 billion, maintaining investment-grade rating - **Margin Performance**: - Gross margin dollar growth at 7%, in line with expectations - Operating margin dollar growth at 10%, below the 12% estimate - Operating cash flow of $2.1 billion, below the $3.2 billion estimate - **Capital Expenditures**: - Capex of $12 billion exceeded the $9.2 billion estimate, leading to a free cash flow miss Valuation and Price Target - **Current Valuation**: - Shares trading at 28x CY26e non-GAAP EPS, in line with Microsoft and Amazon - **Price Target Adjustment**: - Price target lowered from $380 to $325 due to lighter results and increased uncertainty around financing outlook Market Metrics - **Market Capitalization**: $619 billion - **52-week Price Range**: $328.33 - $122.82 - **Average Daily Volume**: 4,286,000 shares Risks and Considerations - **Upside Risks**: - Potential market share gains from competitors like Workday and SAP - **Downside Risks**: - Execution risks from recent sales re-organization - Limited traction with Oracle's Cloud offerings - Increased competition in the software industry Conclusion - **Investment Rating**: Buy - **Forecasted Stock Return**: 46.6% including a 0.9% dividend yield - **Overall Outlook**: Despite some short-term challenges, the long-term growth potential remains compelling, particularly with the significant backlog and anticipated revenue growth in cloud infrastructure.