Divebombing into oblivion
Dying along with Larry
15 replies (most recent on top)
-10.33 past 5 days. OpenAI's fall is gonna DESTROY Oracle when Larry has to meet his margins on all his Oracle stock loans. He'll have to liquidate quite a bit.
Wow. That's a remarkably precipitous decline. Valuation back to June of 2024. It's appropriate given the ridiculous "prospects of future revenue" PE ratios of today.
Look at buys versus sells also. There was a big sell at the end of today:
https://finance.yahoo.com/chart/ORCL
Will today’s little improvement hold?
@ac yeah, 126 - down, down , deeper and down
Its creating the bell curve, going to end around 110 to the price level that was in 2024.
Again - called it in April. Burn, baby, burn. Well deserved. History repeating itself. Enron, Lehman, WorldCom.
LOL. It becomes revenue when a company actually hands over the cash. OpenAI gets the cash when they get paid for tokens. How is that working out for them so far?
The impact all of this clusterf@@k has caused on the world economy is disgusting. Funny how mentions of climate change have all but disappeared, isn't it? Not that I was a big believer anyway, I am just exasperated living in a world where most people have the attention span of a gnat.
@ac did you mistype and meant 113? Much higher probability of hitting 113. Markets are going down today. Look at the futures.
@ae what if there are defaults on the RPOs? When the bubble pops companies aren't going to be able to live up to their remaining performance obligations. The problem with being over leveraged in an over bought market is that when the inevitable pull back occurs you don't have any buffer to tolerate it. I believe that Oracle has made bets that just won't payoff. It will be fun to watch what happens. I hold zero shares on ORCL.
@ae LOL, this guy just said losing 50% of booked revenue is not a big deal, that being stuck with rapidly depreciating custom made data center is no big deal.
Copium.
@ac it’s going to drop under $100 next week
But it will pop back to its high of $300+ because of the RPO. Remember openAI is just $300b of the current $638B in RPO. And RPO is already booked contracts that become revenue across the 3-5 years (or whatever the contract length is)
I bet it closes at 131 today
It’s over. Oracle is a penny stock in the making...
Data Center owners selling majority stakes in their "cash cows". LOL
The cracks are forming.
https://www.youtube.com/watch?v=iVkgD4phOHQ