Oracle stock came under renewed pressure on Monday, extending a bruising selloff that has weighed heavily on the stock for several weeks. The cloud computing giant has lost more than 15% over the past five days, following a steep 23.1% drop in November that erased gains sparked by its blockbuster September earnings report. The stock's decline reflects a sharp reversal in sentiment after Oracle stunned investors earlier this year by revealing that its total backlog had more than quadrupled to $455 billion. T ...

Valued at a market cap of $12.4 billion, Akamai Technologies, Inc. (AKAM) is a prominent provider of cloud computing, cybersecurity, and content delivery network services. Headquartered in Cambridge, Massachusetts, the company operates a globally distributed edge platform that helps enterprises deliver faster, more secure, and more reliable digital experiences to users worldwide. Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and AKAM fits the label perfectly, wit ...

Core Viewpoint - The "Magnificent Seven" tech stocks present promising investment opportunities, with Nvidia identified as the top pick for 2026 due to its strong growth potential and favorable valuation metrics [1][13][16]. Group 1: Overview of the Magnificent Seven - The "Magnificent Seven" includes the largest tech companies, with Meta Platforms and Tesla among the top 10, although Broadcom and Taiwan Semiconductor are also significant players [1]. - The stocks have historically been winners for investors, but the focus is on identifying the best performer for 2026 [2]. Group 2: Performance Analysis - Apple and Tesla are noted for their low growth rates, making them less attractive for investment in 2026 [4]. - Nvidia, with a growth rate of 62% year-over-year, stands out among the group, while Microsoft, Amazon, and Alphabet also show strong potential due to their cloud computing segments [7][11]. Group 3: Individual Stock Insights - Meta Platforms has faced stock declines due to concerns over AI spending, despite a recent rebound following cost-cutting announcements [10]. - Nvidia's revenue growth is projected to continue, with expectations of a 48% increase in fiscal 2027, supported by rising global data center capital expenditures [11][13]. - Nvidia is currently trading at 25 times next year's expected earnings, making it one of the cheaper stocks in the group, reinforcing its position as the top investment choice [14][16].

Core Insights - Oracle faced a challenging week, culminating in a report of a one-year delay in delivering data centers for OpenAI due to material and labor shortages [1][2] - The company's stock fell 4.5% on Friday, marking a nearly 13% decline for the week, following disappointing quarterly earnings [2][3] - Oracle's heavy borrowing to compete in the cloud computing space raises concerns among investors about its ability to manage debt if AI demand does not meet expectations [4][5] Company Performance - Oracle's shares dropped significantly after the announcement of delays in data center deliveries for OpenAI, with the stock reaching levels not seen since June [2][6] - The company reported quarterly earnings that fell short of market expectations, leading to a more than 10% drop in stock value on Thursday [3][6] - Despite the setbacks, Oracle maintains that all milestones related to its commitments remain on track [3] Industry Context - Oracle is aggressively investing in AI infrastructure to compete with major cloud computing players like Microsoft, Alphabet, and Amazon, but unlike its competitors, it is relying heavily on borrowing [4] - OpenAI represents a significant portion of Oracle's cloud computing backlog, accounting for $300 billion, but the startup is not expected to become profitable until the end of the decade [5] - The future revenue realization from OpenAI is contingent on the latter's ability to secure funding from investors or lenders [5]

Oracle Corp. shares plunged by the most since January, erasing more than $100 billion in market value, after the company escalated its spending on AI data centers and other equipment, rising outlays that are taking longer to translate into cloud revenue than investors want. Capital expenditures, a metric of data center spending, were about $12 billion in the quarter, an increase from $8.5 billion in the preceding period, the company said Wednesday in a statement. Analysts anticipated $8.25 billion in capi ...

Justin Sullivan / Getty Images Wall Street is generally optimistic about both Oracle's and Broadcom's upcoming earnings reports. Key Takeaways Tech giants Oracle and Broadcom are slated to report quarterly earnings this week, following up on results that wowed investors in September. Oracle stock has given up all of its gains after last quarter's earnings, weighed on by AI bubble and customer concentration concerns. Broadcom stock has charged higher. Two tech giants shocked Wall Street with their ea ...

Dec 8 (Reuters) - IBM said on Monday it will buy data infrastructure company Confluent in a deal valued at $11 billion, ramping ​up its cloud-computing offerings to capitalize on an AI-driven demand boom. Big ‌Blue, under CEO Arvind Krishna, has doubled down on M&As to beef up its cloud ‌and software business - a high-growth, high-margin area - as customers invest to upgrade their digital infrastructure to house complex artificial intelligence applications. Mountain View, California-based Confluent provi ...

Core Viewpoint - Digital Realty Trust is currently underperforming compared to the S&P 500, but it has significant potential to benefit from the AI megatrend in the coming years [1][2]. Company Overview - Digital Realty Trust owns over 300 data centers and serves more than 5,000 customers, including major tech companies [2][9]. - The company has a market capitalization of $55 billion and a current dividend yield of approximately 3% [7]. Data Center Comparison - Not all data centers are equal; Digital Realty's facilities are designed for general uses like web hosting and cloud computing, rather than specialized AI workloads [5][4]. - AI data centers, equipped with advanced technology like Nvidia's GPUs, are currently outperforming general data centers in the market [5][12]. Strategic Initiatives - Digital Realty is retrofitting existing data centers and constructing new AI-focused facilities, a process that may take up to 18 months [8]. - The company is positioned to leverage its extensive customer base and existing relationships with tech giants to secure future contracts [9][10]. Future Outlook - By 2030, Digital Realty is expected to have a significant number of AI data centers operational, which could enhance its cash flow and market position [10][11]. - The potential for exponential revenue growth exists once sufficient AI data centers are established to support long-term contracts [12][13]. Investment Consideration - Digital Realty Trust is viewed as a "show me" stock, with potential for growth in the long term, making it a possible buying opportunity for investors [11][14]. - The company offers a relatively stable investment compared to high-flying AI data center operators, appealing to those seeking lower risk with potential for significant upside [14].

Core Insights - Alibaba's stock experienced a decline despite reporting higher-than-expected revenue, indicating market concerns despite positive financial results [2]. Financial Performance - The company reported revenue growth, surpassing market expectations, which reflects strong performance in its core business segments [2]. - The growth in artificial intelligence and cloud computing sectors was highlighted as a significant driver for future revenue [2]. Market Reaction - The stock price fell early on Tuesday, suggesting that investor sentiment may not align with the positive earnings report [2].

Core Insights - The Retail sector is showing strong earnings growth in Q3, with S&P 500 retailers reporting an 18.5% increase in earnings and an 8.4% rise in revenues compared to the previous year [4][6] - The overall S&P 500 index is also performing well, with total earnings up 14.0% and revenues up 7.9% [6] - The Retail sector's performance is characterized by a solid top-line growth and a significant percentage of companies beating earnings and revenue estimates [8] Retail Sector Performance - For the S&P 500 index, 76.7% of retailers have reported Q3 results, with 69.6% beating EPS estimates and 82.6% beating revenue estimates [4][6] - In the S&P 600 index, 69.7% of retailers reported earnings up 17.9% and revenues up 6.1%, with 60.9% beating EPS estimates and 69.6% beating revenue estimates [9] Historical Context - The growth rates for the Retail sector's Q3 earnings and revenues are being compared to historical data, showing a positive trend [5][10] - Amazon's contribution to the Retail sector's growth is notable, with its Q3 earnings up 29.3% and revenues up 11.9%, largely driven by its cloud computing business [7] Future Outlook - Total S&P 500 earnings for Q3 are expected to increase by 14.8% with an 8.1% rise in revenues when combining reported results with estimates for upcoming reports [14] - Recent trends indicate a slight decline in Q4 estimates, contrasting with earlier positive revisions during the Q3 reporting cycle [19]