Oracle's stock has dropped over 60% from its peak, highlighting a turbulent period marked by significant layoffs and a hyperinvestment cycle in AI. In a bid to regain market confidence, Oracle is redirecting its strategy, pledging over $100 billion to build AI data centers as part of the Stargate project with OpenAI and SoftBank. Despite the challenges of high debt and negative cash flow, the company maintains optimistic revenue projections of $67 billion for FY 2026, buoyed by a 68% rise in Infrastructure as a Service revenue.
“오라클이 조금 더 올라간 이유는 오라클과 아마존이 또 협력 발표를 오늘 한 예, 그런 상황입니다.”
“just judging by the stock performance itself it has more than tripled from the $70 baseline price to a peak of more than $340 a share in the second half of last year.”
“as of the time of today's recording, from its peak, this stock has essentially collapsed by more than 60%.”
“you can see that they basically peaked out at over $340 per share and experienced their second so-called identity crisis with this current 60% draw down.”
“So I think a little bit about the origin of Oracle. So they were founded back in 1977.”
“and they were the dominant enterprise database company.”
“So I think a little bit about the origin of Oracle. So they were founded back in 1977 and they were the dominant enterprise database company.”
“But the main problem is that as we talked about the entire cloud transition was that Oracle was late to the cloud game.”
“Oracle actually started to embed its database directly into their rival clouds. So they launched things like Oracle database at Azure, at Google Cloud and also at AWS.”
“Oracle actually positioned OCI as a cost-effective alternative to AWS or Azure for training and running large AI models.”
“they essentially offered superior price toerformance for GPU clusters, especially for Nvidia's GPU cluster with a bare metal architecture.”
“starting in late 2023 early 2024 Oracle actually positioned OCI as a cost-effective alternative to AWS or Azure for training and running large AI models”
