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    What’s going on with Oracle?

    I don’t understand how it can be up 40% despite missing earnings. Yes I know they projected 500 billion revenue but still… 40%…? Is this just hype around AI/cloud? Or are investors pricing in something much bigger long term? I get that guidance matters more than a single earnings miss, but it feels extreme. Also, does this then necessarily mean there’s going to be a prolonged period of heightened volatility around Oracle and seeing whether this stratospheric revenue projection is met, or is this new price range likely to be the norm for the near future?

    What’s going on with Oracle?
    byu/casterlyrockk ininvesting



    Posted by casterlyrockk

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    31 Comments

    1. pandadogunited on

      Companies are priced based on expected cash flows. The past is irrelevant. What you’re seeing is the result of the market changing their mind on what they expect those cash flows to be.

    5. Vitaly_msk on

      short squeeze! yesterday all evening I was thinking about buying call options. and didn’t take it. today they are flying by 120k%!!!

    7. Rav_3d on

      We can try to “understand” the market, which is impossible, or we can accept the bull market at face value and profit.

      These projections, outrageous as they may be, indicate slowdown in AI spending is not around the corner.

      People have been arguing with this market since April. Everyone waiting for the crash. Yet, we cannot even manage a 3% pullback in the seasonally worst time of the year.

      ORCL just solidified the trade that has been powering this market for months. Of course it’s too late to jump into this stock, but they just gave a strong indication that the AI “bubble” is far from being inflated.

    8. abeBroham-Linkin on

      It’s a confidence bubble. Regardless of how they performed investors are confident that they have something. What is that something, I couldn’t even tell ya.

    10. millerlit on

      It’s like they guided like NVIDIA did at the beginning of their run and then executed.  Investors don’t want to miss out.  If they don’t execute they will be punished 

    11. DisjointedHuntsville on

      The AI trade was pricing only a single quarter in advance because everyone was only guiding out to a single quarter.

      Oracle came out and cemented what was previously hypothetical with the demand out to many years and showing contractual backlogs to back it up.

      This removes a lot of the uncertainties outside of the present quarter and gives investors a view into a multi year backlog.

    12. SnS2500 on

      They have $455 BILLION in signed contracts for future work (RPOs).

      Ellison has been talking about this for a year, but the totally gigantic growth they have lined up over the next few years is staggering.

    13. lab-gone-wrong on

      Everyone is desperate for the next Nvidia and that new contract estimate is Nvidia-esque growth 

    17. Particular-Break-205 on

      Similar to when Amazon sent their excess packages to UPS in a period of high demand.

      It’ll be good for Oracle but they’re basically there as a hedge against capacity to manage risk. Big tech companies don’t want to keep spending on their own data centers.

    18. DJ_Laaal on

      The broader question we should be asking is: what’s going on with this market?? Nothing makes sense. Up is down. Left is right. Make it make sense.

    20. TallIndependent2037 on

      No one understands. Oracle is a horrible company with a bad attitude and awful software.

      The glory days were the Oracle 7 RDBMS in 1992. They just buy other software companies and pretend to integrate them, they buy good ideas like Solaris and Java and ruin them for everyone. Who the f*** keeps buying their stuff?

      The only good thing Larry did was transform Americas Cup sailing from a low speed yawn-fest to a high octane TV spectacle.

    21. noob_7777 on

      the question is what are all these companies gonna do with all those GPUs when the inevitable great depression 2.0 arrives…

    22. IronyElSupremo on

      Though the company has been around since Orange Julius drink was a thing, Oracle’s relational database products will be needed in the AI revolution.

    26. AmericanScream on

      Is this another company that’s buying back its own stock? (Which I think should not be legal)

    29. drjelt on

      My question is how would this be beneficial for the other chip makers?

      If oracle is competing with chip makers for customers who rather pay for GPU as a service rather than purchasing the actual chips themselves. (Assuming a zerosum)

      And i will definitely look out for cancellation clause within oracle contract – if customer rather pay for GPU subscription rather than the chips purchase it means customers may not be as committed for long term.

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