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Oracle Has To Stop The Bleeding
Oracle can't win for losin' all of a sudden.
Coming off their worst week since 2018 -- and their se
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Could be time to catch a falling knife..Oracle has close ties to the current administration and i would be shocked if DT lets his buddy fail. Some more crony capitalism headed our way.
My rule of thumb for blue-chips says a drawdown of 60-75% deserves a look, almost regardless of the circumstances unless of course there’s some reason to believe the going concern question’s relevant. Take that for whatever it’s worth.
Ha! I was about to post a comment on your very prescient piece from last week. Nicely done!
@Sophist – alas, you may be right. Remember when Republicans were seen as business-friendly hands-off free marketeers? Along with great stewards of government spending?
It’s hard to compete with the megacap hyperscalers, or become more like them. Who knew?
H-Man, this is a poker game where Oracle has declared it is “all in”. If it works, Oracle today is very cheap. If the AI boom is a bust, Oracle looks very expensive. Pick one or the other, and if you have the stomach, give it a ride. On that same note, who is going to provide energy for all of these data centers? That may be a better investment.
XLU is down about 8% in the past two months, so the market doesn’t think so at the moment…
I think it quite possible that AI can still be the next big thing and orcl be a bad investment. Amazon and Google don’t need Oracle.
I live in Ann arbor. I use AI constantly for work, but don’t want a data center increasing my energy bill, ruining my freshwater. There is a lot of grassroots resistance against data centers. It’s a k shaped world babay
In retrospect, Oracle was such an obvious short at its 52 week high at $345. I missed that obvious opportunity. Just like NVDA eliminated any potential China sales from its future revenue projections, ….NVIDIA, and AVGO need to eliminate any potential sales to Open AI and Oracle from their revenue projections unless Open AI or Oracle have already paid. And also announce they don’t have any significant accounts receivable because anything sold to them is only on an immediate cash basis only, from now on. And then publicly announce they have done so ASAP because NVIDIA and AVGO stock are suffering from the guilt by association with Oracle and Open AI. Oracle is uninvestable as long as they have over $100 billion in debt and negative cash flow for the next 2-3+ yrs. The overall accelerated computing/AI industry is doing well as demonstrated by tonight’s astonishing results from Micron.
In retrospect, Larry should have sold $50 billion of his personal Oracle stock when it was $345/share, …and used that $50 billion to pay off half of Oracle’s debt. His personal Oracle stock in the past 3 months, has lost much more than $50 billion of value. Also, Safra Catz resigning at the peak, the same week of Oracle stock reaching 52 week high of $345 was the TELL, that foretold this sordid debt debacle.