Genius or Flop?

Barron's:

Genius or Cliff Dive (Larry Ellison’s $300 billion dollar AI Power Play)

Oracle is riding the AI wave like a rocket, with the stock up 373% in 3 years, a reported $300 billion dollar OpenAI contract, and a backlog exploding to $455 billion dollars.

Larry Ellison, 81 and still in attack mode, is turning Oracle into the supplier of choice for AI builders, not a rival. The playbook is simple: data plus compute equals destiny. The company is loading up on capacity and customers, while Ellison pursues strategic side quests that protect the core, from the TikTok USA bid to deep ties with Skydance and Paramount.

The bill is massive. Oracle is taking on more than 90B dollars in long-term debt, sold 18B dollars in bonds in September, and could see gross margins fall from about 72 percent to about 52 percent by 2029 even as revenue soars.

If OpenAI and a few whales deliver, Ellison’s biggest bet becomes his legacy, with scale lifting profits over time. If contracts wobble or capex drags, customer concentration plus leverage becomes the plot twist. Translation: Oracle is trading margin now for AI dominance later, and Wall Street is watching.

Source:

https://www.barrons.com/articles/larry-ellison-oracle-56e03912

#Leadership #Strategy #Finance #AI

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13 replies (most recent on top)

@w4 Not pointing fingers at anyone but do you think nature has its way with everyone? Or that is a subjective action in the eye of a beholder? Like for example global warming - some people feel cold while others feel global warming for one reason or the other.

100% flop. He will not live long enough to see this playout and the kids are duds. I am just pointing out that the nature will do what it always do, we all have a limited runway - not advocating anything, just pointing what nature always does. The kids will waste away the money and within a few generations all will go back to zero. All that greed is to no avail, all the suffering he caused is in vain. He's pathetic.

@d6 Is that the same "smart" investor who is funding Antifa via NGOs, like other “smart” investors also do?

Probably the smartest investor that has walked the planet once said about his round trip with Paramount: "It was 100% my decision and we sold it all, and we lost quite a bit of money."

Good luck to the group with the same plan thinking it is a better plan.

@ac you think Oracle is down? I’m embarrassed you haven’t been fired yet for being this stupid

@a7 How does the co-k of an id--tic nepo baby taste

@a7 Still your paycheck is not going up as a result, unless your a business investor like DE and the like and are planning to build a multi billion dollar empire. At the EOD you just get a paycheck like the rest of us, and can be let-go in a moments notice - at will employment.

@a7 please post your net worth so we know whether we should worship you or beat you to death.

Um the company is down at least 25% on the 5 yr chart (psky)

@a7 Did I tell him how to invest his money? No. I told him how stupid he is. Not to mention, just because someone is the richest person on the planet doesn’t mean they’re smart. It just means they exploited enough people to make that money.

@a2 I love watching people who can barely afford a cup of coffee telling the richest man in the world how to invest their money.

I cannot wait for these people to realize that AI is a scam and they lose billions on their investments.

Huge flop. What the fu-k kind of question is that?

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Genius or Flop?

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