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.
Oracle's capital spending on AI infrastructure has surged, causing free cash flow to turn sharply negative and shifting funding reliance from internal cash to debt. This shift raises the cost of capital and pressures investment returns, evidenced by ...
This week, US economic data is light, shifting focus to geopolitics and corporate events. President Trump will host Chinese President Xi Jinping to discuss trade, tariffs, Taiwan, and AI, with potential announcements on Chinese purchases of US goods ...
Oracle Corporation faces near-term financial pressure due to a $664 billion backlog requiring significant capital expenditure, impacting cash flow, balance sheet, and net income. Despite this, the company is experiencing strong revenue growth and pro...
IBM has increased its dividend for 31 consecutive years, continuing a long-standing streak. However, the latest raise was minimal, only a penny per quarter, which does not keep pace with inflation rates around 3%. While IBM's dividend yield remains t...
Oracle announced a quarterly dividend of $0.50 per share payable on October 23, 2026, maintaining its payout from the previous quarter. This comes after a strong fiscal Q1 2027 report showing 30% revenue growth and a 62% surge in cloud revenue, drive...
