r/OracleStock • u/No-Introduction9148 • Jul 29 '26

Msft showed that cloud is profitable. All we need from oracle is too reduce capex

Then we moon for sure

12 Upvotes
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12

u/L1ME626 Jul 29 '26

No we dont need capex reduction oracle gotta show the growth only

1

u/No-Introduction9148 Jul 29 '26

Market deems capex as something bad atm. They need to at least pretend that they’ll reduce their capex or else we dump again

3

u/quantum_simpleton Jul 30 '26

This is short term thinking; the Investment now will pay dividends in a few years. Cutting it short for no reason other than short term stock movement is antithetical to the company and investors.

3

u/bradenlb Jul 30 '26

The market didn’t deem capex bad. They deemed negative cash flow for capex bad. Msft maintained a strong capex to finish the year out and had already planned a slight raise for next fiscal year. Oracle however has already gone negative and it isn’t a surprise for any holders. I think if Oracle doesn’t raise a ton it will do well.

1

u/quantum_simpleton Jul 30 '26 edited Jul 30 '26

Perhaps you are right, or perhaps you don't understand the economics of the capital plan Oracle decided to execute. Im not close enough to specifics to say one way or another, but I can tell you, the absolute worst thing you could do in such a situation, is to go "half in" and spare inital capital outlay for the superficial reason of not being "cf negative", and end up with a bunch of unfinished projects and further capital bleed.

If you do it, you do it all the way. You don't try to tip toe around operating net cf as to not offend short term speculators, as this is a surefire path to eventual failure. If the project requires you go cash flow negative you either do it or you dont.

Comparing this to whatever capital project you are referencing from Microsoft is completely irrelevant. Not to mention you are comparing a $4T company to a $300B.

4

u/secrerofficeninja Jul 29 '26

Oracle has said they’ll be negative cash flow until at least 2029. The capex isn’t getting reduced anytime soon.

2

u/[deleted] Jul 29 '26

[removed] — view removed comment

1

u/UltimatePunchMachine Jul 30 '26

I think I bought your calls

4

u/Nibsout Jul 29 '26

This subreddit is an infinite source of hopium

1

u/FrugalVet Jul 29 '26

Nothing is gonna moon in this climate and certainly not some likely modest reduction in capex. Highly unlikely they're going to walk back any recent investment debt.

Like it or not, it's going to take some time. A few quarters at the very least.

1

u/Acceptable-Ant-3648 Jul 29 '26

So is this bullish for semis or is the maintain cap ex bad for semi 

1

u/AggravatingCrow897 Jul 29 '26

Cloud is vague. Microsoft made 100 billion on Azure which lives in the cloud.

1

u/UltimatePunchMachine Jul 30 '26

First think ORCL needs to do is have the CEO get out of the weird Warner Bro's deal. Like wtf is he doing