The current equity rally driven by AI enthusiasm is supported by increasing debt and credit market stress, resembling past bubbles from 1999 and 2007. Major tech companies like Oracle face risks due to heavy capital expenditures, rising debt, and dependence on unstable partners such as OpenAI. OpenAI's delayed IPO, high cash burn, and market share losses increase the risk of default, which could negatively impact its major partners and investors. This situation suggests that some large, well-known companies may be among the first to suffer if the AI bubble bursts.
Investors pulled $700 million from the iShares Expanded Tech-Software Sector ETF (IGV) just hours before Snowflake reported a strong quarter with 37% product revenue growth and an increased full-year forecast, driven partly by AI. Despite Snowflake's...
Oracle's stock has fallen about 20% in 2026 due to heavy capital spending and negative free cash flow, while its cloud peers like Microsoft and Amazon have gained. Despite this, analysts remain optimistic, with an average price target implying a 52% ...
This week, the key market event is the August Consumer Price Index (CPI) report, which could influence the Federal Reserve's decision on a rate hike in September. Economists expect a moderate rise in inflation, with core inflation slightly easing. St...
Oracle's stock has stabilized above $120, defying bearish expectations amid a broader software sector recovery. The company's $638 billion Remaining Performance Obligations (RPO), closely linked to OpenAI, support confidence in future revenue and AI ...
Oracle reported strong fiscal 2026 results with 17% revenue growth to $67 billion and a 36% net income increase, driven by a 75% surge in its cloud infrastructure segment. Despite a recent 55% stock price drop from its peak, Morgan Stanley raised Ora...
