Oracle Pulls A 360
Welcome to the Schmoozeletter Blog. Your source for weekly water cooler wisecracks from the world of finance. If you have an opinion different than mine or a topic you want to hear about, let me know!
This week, the biggest news in the markets was:
Oracle Pulls A 360!
Gaze upon thine crystal 10-Q for the mystical Performance Obligation growth:
360% growth in their future contracts! (Technically 359%, but “Oracle pulls a 359” doesn’t really hit the same.)
I was able to capture this live shot of Oracle shareholders looking at the quarterly results.
Wall Street sure didn’t have this growth in the tarot cards, and ORCL exploded up 36% by the end of day Wednesday.
How does a company with revenue of $59B over the trailing twelve months all of a sudden have $455B in future revenue on the books?
In a couple letters:
AI
“We signed four multi-billion-dollar contracts with three different customers in Q1,” said Oracle CEO, Safra Catz.
Yeah, that’ll do it.
“MultiCloud database revenue from Amazon, Google and Microsoft grew at the incredible rate of 1,529% in Q1,” said Oracle Chairman and newly minted world’s richest man, Larry Ellison.
The big dogs with their large language models need lots of data centers for their AI and Cloud whojamawhatitz. And they are shelling out the dough.
Loaded Larry doesn’t see this slowing down at all. He said, “the AI inferencing market will be much, much larger than the AI training market. AI inferencing will be used to run robotic factories, robotic cars, robotic greenhouses, biomolecular simulations for drug design, interpreting medical diagnostic images and laboratory results, automating laboratories, placing bets in financial markets, automating legal processes, automating financial processes, automating sales processes.”
“Not everyone fully grasped the magnitude of the tsunami that is approaching.”
Take cover! There is a tsunami of cash headed our way!
Can’t say I disagree with him. Who wouldn’t trust this face?
Not sure anyone would argue that AI is here to stay. You think I’m not going to load the Schmoozeletter with these AI-generated images now that I can?
Although they do have their limitations…
But despite the lack of creativity, they are undoubtedly popular.
And Larry’s tsunami of AI cash is going to be a rising tide that lifts all boats in the Cloud space. That is good news for Oracle. That is also good news for the growth of Microsoft, Amazon, and Google.
Out of the top cloud companies, can you take a wild guess which one is the cheapest?
