Oracle's AI Cloud Risks, Stock Plummets

0:00Oracle stock has taken a brutal hit, dropping 47% from its peak of $328 back in September to $173 by late April. The cloud infrastructure side, fueled by AI demand, is supposed to be the big growth engine, even earning props as the fourth major AI hyperscaler. From Bank of America last fall, earlier this month, Oracle teamed up deeper with Amazon Web Services, spiking its market cap by $100 billion. But they also scrapped a massive $1.1 to $1.4 billion order for Nvidia Racks, and ditch plans for a big AI data center with. Open AI in Texas, though they push back hard on those reports. Analysts are mixed, Rothschild's guy, called a cell, with a $175 target last September, and now even that's looking high. Layoffs hit 20 to 30,000 workers, just like some predicted to fix data center funding woes. Morgan Stanley just trimmed their price target to $207 on a hold rating, citing slimmer

1:04gross margins from GPU ramps and risks. Like customer concentration, especially with open AI, making up over half of their huge $553 billion remaining performance. Obligations. Dets ballooning too, with fair values jumping big time. Bottom line, Oracle's betting heavy on AI cloud ramps and deals like fusion apps, a weaker margins, capacity hurdles, and that open AI reliance could. Drag it lower or spark a rebound if things accelerate faster than expected. I'm Cory with the story. That's your Durham News Today update, AI powered and always on.