This company's AI infrastructure business is growing quickly.The trillion-dollar club keeps getting bigger. Apple became the first U.S.-listed stock to reach a $1 trillion market cap back in 2018. Today, there are a total of 10 companies that have passed the trillion-dollar threshold:Nvidia: $4.36 trillionMicrosoft: $3.86 trillionApple: $3.82 trillionAlphabet: $3.05 trillionAmazon: $2.32 trillionMeta Platforms: $1.84 trillionBroadcom: $1.6 trillionTaiwan Semiconductor: $1.23 trillionTesla: $1.37 trillionBer ...

If you want to find good companies at bargain prices that will provide you with long-term returns and dividends in any investing climate, then my Seeking Alpha Marketplace service (Good Stocks@Bargain Prices) is a good match for you.Oracle Corporation (NYSE: ORCL ) is among the largest technology companies in the world, which deals with database software, enterprise applications, and fast-expanding services in the cloud infrastructure. It was established in 1977, and since then, it has developed as a pionee ...

Core Viewpoint - Oracle Corp (NYSE:ORCL) is experiencing a decline in stock value due to concerns over low margins in its Nvidia Cloud business, despite initial euphoria following AI deals [2][4] Group 1: Market Sentiment and Stock Performance - The stock saw a significant increase of over 40% from September 9th to September 10th, followed by a steady retracement, indicating a potential bubble phase in the market [3] - Analysts express concerns that Oracle may not be positioned to invest heavily in AI infrastructure like competitors Amazon and Alphabet [2][3] Group 2: Financial Dynamics and Investment Needs - Oracle's recent spending is largely debt-driven, which raises concerns about long-term profitability and market confidence [3] - OpenAI is projected to require over $200 billion in funding, with Oracle potentially needing to borrow tens of billions to support its data center expansion for AI workloads [4] Group 3: Strategic Positioning and Market Share - Oracle has successfully expanded into cloud infrastructure for generative AI workloads, gaining market share among hyperscalers due to its cost-effective data center architecture [5] - The market may be underestimating the profitability potential of Oracle's growth in the AI sector [5]

Core Viewpoint - Oracle Corporation is facing skepticism regarding its AI Cloud business margins, with analysts noting potential weaknesses in the ongoing growth driven by AI deals [1][2]. Group 1: Analyst Insights - Karen Finerman, CEO of Metropolitan Capital Advisors, highlighted concerns about Oracle's AI Cloud margins being thin and noted "cracks" in the market's confidence regarding the sustainability of large AI deals [1]. - Finerman mentioned that the market is questioning the realization of significant revenue projections, citing a lack of evidence for the promised growth despite large headline numbers [1]. - Analysts express concerns about Oracle's potential need to borrow tens of billions to support its commitments related to the OpenAI deal, given OpenAI's projected $115 billion burn over the next four years [2]. Group 2: Market Position and Growth Potential - ClearBridge Large Cap Growth Strategy initiated new positions in Oracle, recognizing its successful expansion into cloud infrastructure for generative AI workloads [3]. - Oracle is gaining market share among hyperscalers due to its cost-effective data center architecture, which is advantageous for large-scale AI training [3]. - The market may be underestimating the profitability of Oracle's growth in the cloud infrastructure sector, suggesting a positive outlook for its market share in the coming years [3].

Key Points Details are emerging on the structure of the TikTok U.S. sales to Oracle and its partners. Oracle may not gain ownership of the TikTok algorithm, but only a license to use it. 10 stocks we like better than Oracle › Oracle (NYSE: ORCL) stock tumbled 5% through 11 a.m. ET, as investors rethink their enthusiasm for the longtime database software company that's turned into a red-hot play on artificial intelligence (AI) through its relationship with OpenAI. And why? Turns out the answer has ...

Core Insights - Oracle's stock is currently trading at a price-to-earnings (P/E) ratio of 36.7, significantly higher than its historical average of 26.8 and the industry average of 35.32, raising concerns for investors as they consider future moves in 2025 [1][5]. Cloud Momentum Versus Rich Valuation - The transition to cloud infrastructure has resulted in Oracle reporting fiscal 2025 Q4 revenues of $15.9 billion, an 11% year-over-year increase, with cloud infrastructure revenues increasing by 52% to $3 billion [2]. - CEO Safra Catz anticipates further acceleration in cloud infrastructure growth, projecting an increase from 50% in fiscal 2025 to over 70% in fiscal 2026 [2]. - Major clients such as Meta and Temu, along with partnerships for AI healthcare platforms, highlight Oracle's expanding influence beyond traditional software [2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for fiscal 2026 revenues is $66.6 billion, indicating a growth of 16.02% compared to the previous year [3]. - The consensus estimate for fiscal 2026 earnings is $6.73 per share, reflecting a slight increase of 0.1% over the past month [3]. Strategic Investments and AI Initiatives - Oracle's involvement in the Stargate AI infrastructure initiative with OpenAI and SoftBank underscores its strategic positioning in the AI sector [4]. - The company plans to invest over $25 billion in capital expenditures for fiscal 2026, significantly up from $7 billion in fiscal 2024, indicating strong management confidence in future demand [4]. Competitive Landscape - Oracle faces stiff competition in the cloud market, with AWS holding a 30% market share, Azure at 20%, and Google also competing strongly [8]. - Despite trailing behind in market share, Oracle differentiates itself through competitive pricing and superior database integration [10]. Stock Performance - Oracle's shares have increased by 52.3% year-to-date, outperforming the Zacks Computer and Technology sector's growth of 14.6% [11]. - In comparison, shares of Microsoft, Google, and Amazon have returned 25.6%, 7.4%, and 0.9% respectively [11]. Strategic Position for Investors - For current shareholders, maintaining Oracle stock is advisable due to its strong competitive position and growth trajectory, bolstered by a recent 25% dividend increase to 50 cents per share [15]. - The company's remaining performance obligations of $138 billion provide substantial revenue visibility, supporting long-term investment [15]. - New investors may consider waiting for more favorable entry points due to the current high valuation and execution risks highlighted by past performance [16][17].