Core Viewpoint - Oracle's new CEOs, Clay Magouyrk and Mike Sicilia, are facing significant challenges as the company's stock has dropped 30% this quarter, marking its steepest decline since 2001 and the dot-com bust [1][2]. Financial Performance - Oracle reported weaker-than-expected quarterly revenue and free cash flow, prompting the new finance leader to announce a $50 billion capital expenditure plan for fiscal 2026, which is 43% higher than previously planned and double the amount from the previous year [3]. - The company is also planning $248 billion in leases to enhance cloud capacity alongside building new data centers [3]. Debt and Investment Concerns - To support its growth plans, Oracle raised $18 billion in a significant bond sale, one of the largest in the tech industry, raising concerns about its ability to maintain an investment-grade debt rating [4]. - Analysts express skepticism about Oracle's capacity to meet its financial obligations without restructuring its contract with OpenAI, which has committed over $300 billion to Oracle [5]. Market Position and Growth Strategy - Oracle's revenue backlog surged by 359% due to its agreement with OpenAI, which initially boosted its stock by nearly 36% [8]. - The company aims to increase revenue to $225 billion by fiscal 2030, primarily driven by AI infrastructure, although this growth may come at the expense of profitability, with gross margins expected to decline from 77% in fiscal 2021 to about 49% by 2030 [15][16]. Investor Sentiment - Some investors remain cautious about Oracle's long-term plans, particularly its heavy reliance on OpenAI, which is facing its own financial challenges [17]. - Analysts have mixed views, with some issuing buy ratings based on potential revenue growth from OpenAI, while others highlight the need for Oracle to improve its market share in cloud infrastructure, where it lags behind competitors like Amazon and Microsoft [18][19].

First of all, we know Oracle has commented on this and they're saying they're pushing back. Tell us, though, what you guys found out. What you found out.Right. Yeah. Oracle is saying that we have a huge contract with open air that's, you know, four and a half gigawatts.They're on the hook to develop data centers larger than I've ever been done. And in a shorter timeframe, they're saying that we're going to be able to deliver on our contracts and deliver on our expansions. Right.What we reported today is tha ...

Oracle Corp. shares plunged the most in almost 11 months 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 capital spending in the quarter, according to data co ...

Oracle shares sank only two there or almost 12% in extended trade after the database software maker posted weaker than expected revenue for the second quarter as it continues to ramp up its spending on AI infrastructure. Investors were also uh unimpressed amid a lack of clarity on the earnings call over how exactly the company plans to finance its capital expenditure plans. Its order backlog soared though and that's interesting, isn't it.The order backlog soared 438% to $523 billion driven by fresh commitme ...

Core Viewpoint - The Nasdaq composite showed strong performance, rising 0.6% on the day, driven by positive earnings reports from technology companies, particularly Credo Technology and MongoDB [1] Group 1: Market Performance - The Nasdaq composite outperformed the stock market, closing off highs but still achieving a 0.6% increase [1] - The Dow Jones Industrial Average also saw a gain, moving ahead by 0.3% [1] Group 2: Company Earnings - Credo Technology, a chip designer, reported strong earnings, contributing to the positive market sentiment [1] - MongoDB, a database software maker, also delivered strong earnings, further supporting the technology sector's performance [1]

Core Insights - Robinhood Markets emerged as the best-performing stock in the S&P 500, with shares soaring nearly 11% following the announcement of a joint venture to acquire a stake in LedgerX, enhancing its offerings in prediction markets [4][9] - Major U.S. equity indexes, including the S&P 500 and Dow, extended their winning streak to four sessions, driven by optimism surrounding a potential rate cut in December [3] - Dell Technologies saw its shares jump close to 6% after raising its full-year sales and profit outlook, citing strong AI-driven demand with record AI server orders exceeding $12 billion year-to-date [5] - Oracle's stock gained 4% despite previous losses, as analysts suggested the recent sell-off may have been overdone [6] - Workday's shares tumbled nearly 8% due to an underwhelming fourth-quarter subscription revenue forecast, attributed to soft demand from higher education and cautious corporate spending [7][9] - Deere & Company experienced a decline of close to 6% after warning of a challenging market environment, with CEO John May indicating ongoing pressures from tariffs and broader agricultural sector challenges [8][10]

Money is still pouring in from the race to build out artificial intelligence infrastructure, but traders are suddenly getting more selective about who the beneficiaries will be. On one end of the spectrum are companies like CoreWeave Inc., the money-losing provider of computing services that is swimming in debt. Its shares plunged 26% last week, marking its worst weekly showing since its debut earlier this year, following on the prior week’s 22% decline. The stock had risen more than 400% from an April l ...

V i e w p o i n t | 09 Oct 2025 07:40:50 ET │ 15 pages Oracle Corporation (ORCL.K) Expecting Positive Customer References + Profitability At AI World CITI'S TAKE After a historic Q1, ORCL shares have traded off 10%+ from recent highs on concerns around quality of backlog, profitability concerns following a slew of press reports and broader AI bubble/circularity concerns. We view the pullback as a buying opportunity as we see a broadening set of customers powering OCI growth, and we expect management to prov ...

Core Insights - The order book for the company stands at approximately $450 billion, which is expected to translate into revenue over the next several years as data centers become operational [1] - The company is positioned in the AI cloud space by renting out GPUs for model training and inference workloads, similar to other hyperscalers [2][6] - The company has a high-margin software and applications business that supports its expansion in cloud infrastructure, unlike competitors who may need to borrow at higher costs [3] - By the end of the decade, the company anticipates a potential upside of $60 billion compared to consensus estimates [4] - The company has recently upgraded its infrastructure and is sourcing chips from Nvidia to enhance its offerings [5] - There is a significant shortage of computing capacity in the market, leading to increased demand for the company's services [6][7] - The company's cloud infrastructure revenue was around $10 billion last year, significantly lower than competitors like Amazon and Azure, which reported $125 billion and $75 billion respectively [8] - The company has been undergoing a transformation since 2017, shifting focus towards providing computing capacity and services [9]

Group 1 - The database-software company achieved billion-dollar contract wins in its latest quarter, leading to a significant increase in share price by over 37% [1]