https://seekingalpha.com/news/4545115-oracle-plans-massive-50-billion-debt-and-equity-raise
If stock prices fall to 154 or below on Monday / Tuesday, better be prepared to leave.
I also doubt Fusion in addition to legacy apps will be more badly hit in addition to Cerner.
Most people reporting to LE org might be in trouble or waiting for reorg.
@gv 154. Look, I can type numbers too. And please don't project, not all of us as as soft as you and cry constantly.
@gd 153 . Be careful since tears are not good for your keyboard
The prediction was right. 153
@ea hmm interesting, those who had targets that high still have them that high. Conservative estimates are around 240. So nothing they said was wrong yet you felt like you won there lmao. Classic dunning kruger. Every big player in the AI space has been going through rapid bo-m-bust cycles. The difference with Oracle and related companies is that the federal government has an interest in seeing them succeed.
@b6 another 140k of people ... lol
154.94 guys ... brace yourself!
Most analysts had targets of 330 to 380 on Oracle less than 10 weeks ago, so yeah, 240 or whatever, LOL. Is this YOUR first time in the market?
@cp it was up over 2% when I posted that. Of course that triggered a selloff for some people. Most analysts have a price target over 240. Is this your first time in the market?
@ck minus 1.35% while Nasdaq is up 0.52% . Is that "rose" ?
This aged well. Stock rose today on the news of issuing equity to raise money for the hyperscaler projects.
If Oracle is planning to sell off Cerner then why are they doing a mass hiring spree for SREs and SDEs for sovereign projects? They would be doing the exact opposite if they were prepping for sale. You don't seem to realize that the VA, DoD and other sovereign contracts are the most stable flow of cash into Oracle at the moment.
@br
With arrival of AI tools, offshoring and India is no longer required.
Most VP's and Directors will try to cut down the cost in India using AI tools keeping resources in their timezones.
@c2 ORACLE will never issue a statement.. They never do or will.
Company has not issued any statements saying the analysis is fake. Most of the time they will clarify like Microsoft to avoid panic exodus.
complete panic in cerner org would be an under statement.
If they layoff 30,000 people, who’s doing work at oracle?
Claude and OpenClaw.
They’re saying India is going to be hit really hard too with rifs
@be this is flat out wrong; if ORCL is so confident these projects are going to be a hit, then they're giving away stock at a deep discount. If you're a healthy company, you issue bonds at 5 to 7% because the interest expense is so much less than the increase in stock you're valuing.
They're issuing equity because the demand for their bonds is so weak. Go look at ORCL 5.375% notes due 2040 and how devalued they are. Translation: investors don't want the junk debt, so they're resorting to equity-linked.
Using equity to raise money is a smart move. There is no debt and no interest to pay. If the money is used to buy assets, then the value of the company goes up by the amount of the share dilution and the share price stays the same. Spend the money on things with no value and the share price will drop. Fair share price should be the value of the company’s assets, minus liabilities, divided by the number of shares.
If they layoff 30,000 people, who’s doing work at oracle?
You don’t have to be a Wall Street banker to realize that
Issuing more shares to raise cash when the stock is down 50% off the high is about as red of a flag as you’ll ever see
Aka - a short time ago ORCL could’ve issued more shares and gotten about $300. Now, more like $160 per share (and plunging in the premarket.)
“my house is so valuable I waited for the real estate bubble to pop before I sold it to get the most money!”