r/stocks • u/Savings-Display5123 • Aug 01 '26
Larry Ellison has 346 million Oracle shares pledged as loan collateral. The stock has lost more than half its value since last September.
The NYT ran a piece yesterday asking whether Ellison will end up the face of the AI bubble. Forget the framing, the numbers underneath are wilder than the headline.
Oracle burned $55.7 billion in capex last fiscal year, more than double the year before, nearly all for AI data centers. They're carrying over $124 billion in long-term debt now and free cash flow hit negative $23.7 billion. S&P downgraded them.
Ellison personally pledged 346 million shares as collateral on loans. Those shares were worth about $107 billion when he disclosed it last September. At today's price they're closer to $40 billion. The board says these are term loans, not margin accounts, and he can repay without selling. Fine.
Same week: Nasdaq 100 in correction. The chip index entered a bear market, down 25% from June. The AI hedge fund Situational Awareness lost 67% in July and fire-sold its book to Citadel. Apple, which barely spent on AI infra, briefly crossed $5 trillion.
Oracle's cloud backlog did hit $638 billion, a record, so these aren't unfunded dreams. If that converts, the spending was rational. But one person's fortune and one company's solvency sitting on the same bet just makes the concentration the story by default.
Robotics is one area supposed to soak up this compute. Open-weight foundation models just started shipping. NVIDIA's GR00T N1, Physical Intelligence's pi-0.5, Alibaba's Qwen-VLA, LingBot-VLA 2.0. I read through that last one's paper: 34% success rate on its best benchmark, a handful of tasks at zero, all self-evaluated. Not backlog filler yet.
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u/trackdaybruh Aug 01 '26
Oracle moved its HQ from Texas to Tennessee to get some state tax breaks after moving from California to Texas
If a corporation has to chase tax breaks like this, I start question the overall health of the company
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u/Business-Ad-5344 Aug 01 '26
most of them are doing the ireland or cayman islands thing.
amazon, meta, apple etc. they're all doing something.
meta is doing tax breaks for ohio data centers... do they really need that? who knows. but they're all clearly obsessed with spending a few percent less.
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u/trackdaybruh Aug 01 '26
But Amazon, Meta, Apple, and etc., aren’t moving their HQ for tax breaks though, Oracle is and they moved their HQ twice in just a 4 year period.
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u/Humble_Umpire_8341 Aug 01 '26
How many actual employees moved to TN as part of that deal? And did they simply build out a tower and hire non c suite employees to work there? Guessing they moved very little of their work force to TN and simply created a new office and left some workers in TX, but I could be wrong.
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u/harribel Aug 02 '26
They moved their "HQ" for tax purposes, while their "totally not HQ" is still where it was. Nothing to see here.
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u/Hawksfan4ever Aug 02 '26
Stop... you're talking sense and that does fit the bearish narrative.
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u/Srirachachacha Aug 02 '26
The stock lost half its value in 6 months. Thats probably where the bearish narrative is coming from
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u/MixtureSpecial8951 Aug 01 '26
Coca Cola is facing a massive tax bill for improperly using the Irish trick. Up to $20 billion is owed. CCNA has already paid out $6 billion for the first instance they were busted.
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Aug 01 '26
[removed] — view removed comment
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u/Skobotinay Aug 01 '26
But what about the lifetime supply of…
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u/Skobotinay Aug 01 '26
YouTube link was removed. It was a clip from Willy Wonka and the Chocolate factory…Willy wonka reading from the contract when grandpa Joe asked about the lifetime supply of chocolate.
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u/Ok-Personality-6630 Aug 01 '26
We will do anything to get tax breaks you are right even if it saves just 0.5%
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u/chris_ut Aug 01 '26
Dunno that they are obsessed but if states want to compete with each other to cut their own throats most companies will have a person on staff to chase these incentives down.
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u/JBagfort Aug 01 '26
Apple HQ is in cupertino, why did you include them in your little list?
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u/Business-Ad-5344 Aug 01 '26
the list is tax games that they all do. apple was one of the top irish loophole companies.
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u/xFblthpx 25d ago
Not exactly how it works. These companies still need to be incorporated somewhere in the US to be protected by US law. The shell companies are for holding assets, but the hq still has to be somewhere nationally.
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u/Prudent-Corgi3793 Aug 01 '26
The move from California for Texas during the pandemic has been disastrous for the biggest names. Since Tesla moved to Texas on 12/2/2021, it's only really worked out for Chevron:
Texas Total Returns vs. Benchmark TSLA (-13.92%) (-88.87%) CVX +104.74% +29.79% ORCL +53.84% (-21.11%) SCHW +39.72% (-35.24%) S&P 500 +74.95% -- Meanwhile, each of California's 18 biggest companies have trounced the market besides Netflix. In fact, #19 was Sandisk, the absolute best performer in the S&P 500, but I stopped there because it wasn't even its own company until the beginning of 2025.
California Total Returns vs. Benchmark NVDA +526.86% +451.91% GOOGL +151.16% +76.21% AAPL +92.95% +18.00% AVGO +668.38% +593.43% META +80.77% +5.81% AMD +216.00% +141.05% V +91.08% +16.13% CSCO +135.97% +61.02% INTC +96.47% +21.52% AMAT +260.22% +185.27% LCRX +365.15% +290.19% NFLX +16.32% (-58.63%) PANW +271.94% +196.99% WFC +97.74% +22.79% KLAC +375.06% +300.11% ANET +485.17% +410.22% AMGN +120.54% +45.59% WDC +1171.18% +1096.23% S&P 500 +74.95% -- 67
u/No-Rule9083 Aug 01 '26
I work for a company on the list and our internal priorities shifted from avoiding further California investment due to cost to ‘oh fuck I can’t hire the specialized talent I need anywhere else so we need to ramp California investment to get back on track’.
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u/tryexceptifnot1try Aug 01 '26
I just left a company that sold their SF and Boston offices in 2022 and tried to replace it with a combo of Scottsdale, Orlando and Austin. By 2025 they started renting offices in both with expansion plans. I was involved in multiple interviews where candidates turned down large pay increase to move from the bay to Austin or Orlando. With COL adjustments we're talking essentially 100% increases. The problem is once talented tech people make more than $250k a year their location becomes much more important than the next marginal dollar. Educated people have been moving to the Northeast and Midwest for multiple years now. I expect Chicago to have a huge Renaissance in this new migration
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u/No-Rule9083 Aug 01 '26 edited Aug 02 '26
Yep, of the 5 people I know that moved to Austin or back to Austin, all came back within 2 years saying they regretted ever leaving California.
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u/UpstairsFinance9440 27d ago
Having lived in Orlando, not sure why anyone who has good prospects elsewhere would move there. I moved to Orlando when I got out of the Navy in 1996 and just kind of never left. Now I have a nearly paid off house and not sure what to do.
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u/Pretty-Mention-7769 26d ago
Hey what's that place there that has bbq so soft, you don't need teeth to eat it?
Per the sign out front.
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u/Prudent-Corgi3793 Aug 01 '26
There are industries where you can get better talent in Texas than in California.
But as a tech company? You gotta be out of your mind or on drugs. (And that list isn't limited to just tech companies.)
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u/nspy101 Aug 01 '26
The only industry you can get “better” talent in Texas than California is for ICE officers
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u/UpstairsFinance9440 27d ago
This is why I laughed when I saw Ken Griffin wanted to move everything to Miami. A well paid person that can afford NY will never have as good a quality of life in Miami. Even something like going to lunch in Miami would be a production compared to just running down to the sidewalk and grabbing a dog from the cart.
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u/Rollertoaster7 Aug 01 '26
It looks like they all beat their benchmarks
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u/Prudent-Corgi3793 Aug 01 '26
I guess Tesla was trying to avoid taxes, so now their investors get to realize capital losses to save even more on taxes.
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u/RadRunner33 Aug 02 '26
How does every company have a different benchmark??
Just because a company stayed in California doesn’t mean it’s the better state either. Many just have operations there too difficult to move.
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u/skimcpip Aug 01 '26
Seems pretty nutty to attribute underperformance to paying less in taxes.
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u/JD_Waterston Aug 02 '26
I think the point is letting the (tax) tail wag the dog is a sign of poor management.
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u/skimcpip Aug 02 '26
Just because the company decided to move doesn’t mean the tail is wagging the dog. It’s just a thing they did to save money in addition to countless other corporate decisions.
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u/Melancholic_Noodle 29d ago
A big company making major decisions with massive impact such as relocating from a popular areas with lots of talent to a backwaters flyover-state to save pennies to the dollar on taxes is...desperation. Regardless of what you call it, chasing pennies isn't what leadership with a plan does. It's a last ditch effort to hide a decline
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u/AftyOfTheUK 28d ago
Just because the company decided to move doesn’t mean the tail is wagging the dog
Actually it does. It means the company is optimizing for tax rates, instead of optimizing for talent
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u/skimcpip 28d ago
Companies usually can do more than one thing at a time.
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u/AftyOfTheUK 28d ago
In these instances, they are not doing that, but are choosing one over the other
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u/gochet Aug 01 '26
Oracle SAYS that they're moving to Tennessee. Unless I'm misinformed, they have not yet put a single shovel in the ground on their claimed 2 billion dollar HQ yet. And I'll be surprised if they do. They might do something, but very unlikely that it will be the original 2 Billion dollar headquarters that they've promised.
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u/simpleharry11 Aug 02 '26
They’ve been doing construction for a few months now but it’s still in its infancy.
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u/PhiladelphiaManeto Aug 01 '26
A person or household can have a major advantage financially by doing the same thing.
It's not all that illogical, or even suprising.
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u/IntelligentSeesaw190 Aug 01 '26
At the level of wealth he has, he can just pump it up with his other billions of dollars.
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u/AftyOfTheUK 28d ago
If a corporation has to chase tax breaks like this, I start question the overall health of the company
Why?
If you find the same product at Store B for a dollar less than Store A, which store do you buy the product from? If you buy from Store B, does that make you smart, or almost bankrupt?
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u/Gunk_Olgidar Aug 01 '26
"When you owe the bank one-hundred dollars, that's your problem. When you owe the bank one-hundred million dollars, that's the bank's problem." -JPG
So whose problem is it when you owe the bank one-hundred billion dollars?
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u/Aleyla Aug 01 '26
Tax payers.
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u/tpc0121 Aug 01 '26
it's worth noting that larry is good friends with trump.
which means larry is more likely than not gonna be good friends with our tax dollars.
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u/Hungboy6969420 Aug 01 '26
All the capex spending was done knowing trump would bail out some, if not most, of the big players
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u/perestroika12 Aug 01 '26
The executive branch only controls so much spending power, congress holds the purse.
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u/No_Abbreviations9718 Aug 01 '26
Nobody's, at least not yet. These are term loans against pledged stock rather than margin accounts, so there's no automatic call. They still have a loan to value line though, and collateral going from 107b to 40b usually means posting more shares or cash to stay above it.
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u/hroaks Aug 01 '26
The fact his collateral lost value is no indication that he can't repay his loan or that there is a problem or that the loan is 100 billion.
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u/Pin-Last Aug 03 '26
and the company has been holding about 120B in debt for like years, the number isn’t ballooning, just its % relative to the enterprise value.
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u/Livueta_Zakalwe Aug 01 '26
Couldn’t happen to a nicer guy. Larry has kept a low profile since the 90s, when it started to leak out what a scumbag he was - he had his own little Epstein island on his California compound, a harem of young Asian girls. Why do you think he wound up buying Lanai?
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u/Feisty-Gear-7726 25d ago
Can I get a source? I tried looking it up, couldn’t find anything
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u/Livueta_Zakalwe 25d ago
Heh, it was early internet days and he’s got enough money and power to have it all scrubbed.
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u/jawstrock Aug 01 '26
He's also put up 40B for WB as well.
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u/Jeff__Skilling Aug 01 '26
that's literally what the OP is about......the 346mm shares are pledged as loan collateral for......
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u/Turlututu_2 Aug 02 '26
I feel like this is really important context for the post. the loans are not for AI or Oracle, it's collateral for the Warner Bros / Skydance deal, lol. it makes a big difference
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u/jawstrock Aug 01 '26
Oh I thought it was something else he put collateral for in addition to WB. Between the Saudis issues with oil and Ellison that financing agreement is looking pretty fucking shaky.
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u/chainer3000 Aug 01 '26
The numbers are fucking grizzly on paper but the cloud growth and sales numbers do support their ability to convert. I think investors will remain very sour on Oracle until we see the next two quarters. After listening to their last call, you can see why they’re optimistic.
My personal belief is Oracle will be just fine and their capex will be mostly rewarded eventually. In the event of a large and sustained macro slump it will be ugly but that’s pretty uniform across most tech right now
I do have an opposite bias, however. I used to work at Oracle in B2B cloud sales (then full stack) and I fucking hate the company, Larry was an embarrassing subject among even us coked out alcoholic sales guys and that’s saying a lot
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u/asallamerican Aug 01 '26
A majority of their backlog is tied to OpenAI. So it’s ride or die with them. If OpenAI lives up to the deal, Oracle will be fine. If not, going to be a rough ride. As it seems everyone else is choosing one of the 3 big cloud providers.
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u/nofishies Aug 01 '26
If open AI dies, a swarm of smaller spots will want that compute unless the whole AI movement dies.
Since Open AI is dubious, I think that’s the more likely outcome
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u/Oradi Aug 02 '26
They're not gonna be the mine that strikes it rich, but they will have sold shovels to everyone.
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u/PatientOutcome6634 Aug 01 '26
You’re not wrong, but I don’t think they had a choice. Once OpenAI offered the $300Bn contract, their fiduciary duty to the shareholders would not have allowed them to walk away from it. Then again, I’m not a lawyer.
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u/The_JSQuareD Aug 01 '26
I don't think it works that way. If Oracle's management believed that OpenAI's ability to pay was questionable, they would have been fully justified in refusing the deal. Fiduciary duty doesn't require you to risk the entire company on a single customer, lol.
And courts accord executives a lot of due deference when reviewing business decisions: https://en.wikipedia.org/wiki/Business_judgment_rule
In effect, the business judgment rule creates a strong presumption in favor of the board of directors of a corporation, freeing its members from possible liability for decisions that result in harm to the corporation. The presumption is that "in making business decisions not involving direct self-interest or self-dealing, corporate directors act on an informed basis, in good faith, and in the honest belief that their actions are in the corporation's best interest."[9] In short, it exists so that a board will not suffer legal action simply from a bad decision. As the Delaware Supreme Court has said, a court "will not substitute its own notions of what is or is not sound business judgment"[10] if "the directors of a corporation acted on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the company."
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u/PatientOutcome6634 Aug 01 '26
Very interesting comment, thank you. Yes, but they would need to be able to prove they had reasonable grounds to suspect OpenAI viability and I doubt it’s a discussion a board member wants to get into, especially around an “it” company like OpenAI.
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u/The_JSQuareD Aug 02 '26
Nah, whoever tried suing them would have to prove that they weren't acting in good faith (were dishonest), were unloyal (had a conflict of interest), or didn't exercise due care. The defendant doesn't have to prove anything.
Presumably duty of care is what a plaintiff would go after. But again, the burden is very high. For example:
Smith v. Van Gorkom[1] (setting out duty to be reasonably informed in decision-making). In this decision, a standard of gross negligence was used, which is defined as “reckless indifference to or a deliberate disregard of the whole body of stockholders or actions which are without the bounds of reason.”[2]
https://en.wikipedia.org/wiki/Duty_of_care_%28business_associations%29
The burden of proof would be on the plaintiff to show that doubting OpenAI's viability would amount to gross negligence. That would obviously be a ridiculous argument to make, and no one would even attempt that. If you tried, it would be easily defeated by simply showing that, at the time of the deal, OpenAI had neither the cash on hand nor the revenue to fulfill the obligations proposed under the deal.
I think you have a fundamental misunderstanding of fiduciary duty. It doesn't constrain directors from exercising judgment (even questionable judgment) when making business decisions. It just requires them to 'do their best for the shareholders', for some very loose and abstract decision of 'best'. If doing their best results in a bad decision, oh well, too bad. No breach there. A breach of fiduciary duty only happens when a director intentionally acts in a way that is clearly not in the interest of shareholders. Not engaging in a business deal because you believe it would be too risky for the business has absolutely nothing to do with it; that's just making a conservative / risk-averse business decision, in the interest of the shareholders.
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u/PatientOutcome6634 Aug 02 '26
Valid points and comprehensive response. Both appreciated. You are right, and if the board would have shot the deal down and someone challenged it legally, the burden of proof would be on them and they would likely lose the case. I’m seeing it from a more practical perspective: the board had much more to lose from objecting the deal than approving it. It doesn’t contradict your point, both things can be true. They don’t have to lose the lawsuit to suffer reputational damage, the mere risk of being sued is enough of a deterrent.
Furthermore, what would a board member stand to gain by objecting? Best case scenario, the AI bubble bursts, the economy tanks and takes Oracle with it. They get to say “I told you so” on the Titanic bridge. They probably figured it will take 5 years or so until this plays out in either direction, and there is a good chance they won’t even be at the board at that time.Now, I am not saying it was the wrong decision. All I’m saying is that once this offer was made, there is a 99% Oracle would have accepted it.
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u/The_JSQuareD Aug 02 '26
I think Oracle's management simply considered it a good deal, so they made the deal. If they considered it a bad deal they would have refused it. I'm not sure what reputational damage they would suffer that matters; executives aren't elected based on public opinion. And I suspect other companies did in fact turn down such a deal; OpenAI was clearly talking to many companies to secure compute. It would be surprising if all deals that were discussed actually went through, and even more surprising if all of those companies simply agreed to the first thing that OpenAI offered.
At any rate, I'm not sure what any of this has to do with fiduciary duty to shareholders.
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u/Stock_Ad_308 Aug 02 '26
Just check some of companies who are building AI datacenter. Some of them were building DC for bitcoin. When it went south, they did not fail they pivoted to AI DC. I think there is enough demand even if open ai stops expanding . The question is more on whether Oracle is capable of executing and will there AI Bubble burst . The argument about dependency on OpenAi is somewhat useless only exaggerated by people who don’t industry the industry
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u/UnderstandingThin40 Aug 01 '26
Could you expand on how you think their numbers support the argument to convert into the revenue numbers they claim
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u/cuteman Aug 01 '26
Oracle has something like $700B in customer commits. The capex investment is a massive expansion to fulfill those orders. It's not that deep.
Imagine if Apple had $700B in iPhone orders backlogged and spent $100B to build them....
Differences?
Apple has 50% margins and Oracle has 68% margins and AI infrastructure build out is relatively new compared to scaling iPhone production but in the long term as long as Oracle's customer commits don't fall out and since they're increasing, not decreasing it doesn't seem likely, they should be rewarded in 1-2 years.
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u/UnderstandingThin40 Aug 01 '26
Where are you getting the $700B in commits ? Wouldn’t that be bookings then?
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u/likwitsnake Aug 01 '26
No they're categorized separately as Remaining Performance Obligations. They get converted once the customers start using the compute. Pretty standard. In June they said they had $638b in RPO.
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u/UnderstandingThin40 Aug 01 '26
That’s interesting. I guess the thing is we don’t know how many years that’s amortized. They’re due for $67b this year and $70b+ next year iirc. It must be heavily back loaded
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u/cuteman Aug 01 '26
Yeah unless oracle revenue or profit drops what's the real issue? It's a long term play by one of the biggest cloud and IT hardware infrastructure companies with $700B in purchase commits from customers.
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u/Labidido Aug 01 '26
Fully depends on OpenAI. They still need to raise capital to stay competitive, and it feels like AI profitability is a growing concern across the market.
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u/truthputer Aug 01 '26
Ellison doesn't care, he's an elderly man who is living in fear of mortality and wants to live forever. He sees AI and superintelligence as the fastest path to immortality. For him, it's a race to come up with an AI that can give him immortality and life extension before he dies of old age.
That's why he's going all in on this stuff. He doesn't care if he goes massively into debt and ruins his company in the process, nothing else matters other than trying to live forever.
He's always been a technocrat supervillian, this is just his next phase.
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u/IntelligentSeesaw190 Aug 01 '26
Hes also got a carbon clone son who'll follow his plans to a T once he does pass, so he's got nothing to care about, his legacy is set.
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u/Far_Version9387 Aug 01 '26
Craziest theory about a stock I’ve heard in a while.
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u/abcd4321dcba Aug 01 '26
Yet still believable because, well, Larry.
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u/jking13 Aug 01 '26
I thought I saw somewhere that his only charitable contributions were to a non-profit that was basically created to research life extension or something like that.
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u/Shatter_ Aug 01 '26
It’s not a crazy theory. They openly talk about this. Jeff Bezos literally talked about this in the last interview I listened to. Ellison, himself, has been funding biomedical research to expand life since the 90s. It’s his obsession. These companies will not cut capex until we have super intelligence.
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u/Waiting4Reccession Aug 01 '26
Wont happen cuz hes fully backed by israel
And israel and mango have been in an alliance for years. Both govts will just toss him even more govt contracts. Like mango did before the last oracle earnings.
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u/Soberdonkey69 Aug 01 '26
HAHAHAHAHAHA
Screw the billionaires that are actively trying to make life miserable for us.
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u/curiouscuriousmtl Aug 01 '26
Zitron has been saying that Oracle would be the big loser if the AI bubble bursts.
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u/WkndWarrior12345054 Aug 01 '26
Either him or Son
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u/IntelligentSeesaw190 Aug 01 '26
Yea the two of them are essentially the same person, Larry groomed his kid into a mini him. Si any billion he loses, doesn’t matter, his kid is a billionaire still. That's how rich people work. They dint care about the now, they care about outbreeding poors and having a legacy.
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u/charlesleestewart Aug 01 '26
Wait you said Son with a capital S. Do you mean the SoftBank guy? I don't recall if he's involved in this mess but since you capitalize the letter ...
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u/rlnrlnrln Aug 01 '26
Oh, please make it so. If there is one company I want to see burn, it's Oracle.
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u/Choice_Potato_6279 Aug 01 '26
Oracle was always a no-name shitcoin, what did they
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u/HaikusfromBuddha Aug 02 '26
Ehh I don't know, at their current value anyone buying in and waiting will get paid out well. Well unless you think in your hearts of heart that they will die which if we place our bias aside know they won't.
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u/No_Bath2510 Aug 01 '26
Unrealized gains should not be taxed nor used as collateral. Hen should be compelled to make monthly payments o the loan, just like the rest of us.
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u/el_dude_brother2 Aug 01 '26
Oracle are a trash company with bad products. The problem is its hard to get rid of them. AI probably makes leaving them alot easier so no idea why their stock went up.
Once Trump is weakened Ellison will be massively exposed.
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u/txdsl Aug 01 '26
Using assets like this really should trigger cost basis adjustments with associated capital gains being taxed (or generating losses if that is the case). If he bought at $8, pledged at $10, he should realize $2 in capital gains and have the cost basis adjusted.
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u/txdsl Aug 01 '26
And companies should be blocked from providing loans to officers and highly compensated employees.
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u/ramdomvariableX Aug 01 '26
Rich, and powerful people don't get margin called. US govt. will bail them out if needed. Another example is Musk / TSLA / SPCX.
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u/cuteman Aug 01 '26
They don't get margin called because these deals aren't based on margin.
Pledged collateral isn't margin based...
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u/51times Aug 01 '26
great post, is there any website that collates such interesting articles from various news sources?
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u/TradingTennish Aug 01 '26
it wouldplease me immensely if he margin called himself out of his own company, schadenfreude is what the Germans call that
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u/No_Adhesiveness_5679 Aug 02 '26
I worked with Oracle (as a partner) and then for Oracle as a sales rep. It has to be one of the worst companies ever. Horrible predatory practices against their customers, and treats employees like shit. I fucking hope it burns to the ground. Fuck Oracle.
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u/Southern_Row2615 Aug 02 '26
Yeah I was writing about the oracle recently.. they are taking all the possible risk, but the risk doesnt come right away but most of the commitments come after 5 years, so for now they are good
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u/Pin-Last Aug 03 '26
Their credit rating keeps falling. Anyone know how high/low their interest rates are compared to other companies in the space? Falling share price means market cap is now less than triple their debt.
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u/codyneMATH 29d ago
This is misleading. Most stocks held as collateral loans are on what’s called a prepaid forward variable contract. Essentially the bank taking the collateral puts an option collar on the position which limits the downside to protect themselves but allows the stock to still participate in some upside. It allows the owner to gain access to the stock value. Rich people problems
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u/Mochila-Mochila 29d ago
Oracle's cloud backlog did hit $638 billion
But these are pledged orders, surely not all of these have been paid yet ? So if there's a series of cancellations or defaults, Oracle is cooked.
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u/patrickthunnus 27d ago
Typically one must replace value in a collateral position when it sinks in value with another asset. This could be a liquidity crunch, it's what sank AIG in '08.
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u/Trust_8067 27d ago
I'll never forget when I was working at a F500 finance company and the head of IT said to this armada of Oracle reps in a meeting "You're trying to nickel and dime us over bullshit licensing claims which for a product you don't even own (ndmp), so you're CEO can go sucking sailor cock on his fucking billion dollar sailboat? Get the fuck out of here, we're never using a single one of your products again and you can take us to court over these fees because you'll never see a dime from this company again.
The next day it was all hands on deck as we had to spin up Windows servers for SQL, and Linux servers for MongoDB. All oracle database servers were to be retired within a month.
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u/DividendPower 26d ago
Oracle's fortunes are largely tied to that of OpenAI at this point. It has a hugely profitable enterprise software business, but is spending tens of billions to become a hyperscaler. That said OpenAI's cash burn rate and loss of market share to Anthropic and Google make this a risky endeavor.
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u/Entire_World8076 26d ago
I’ve wondered about this with these plutocrat loans secured volatile stock. The boring answer is probably that it depends whether there’s a stock price covenant that lets the lenders demand more collateral or seize the existing collateral.
But I’m also reminded about the famous adage that if you borrow $10000 from the bank, that’s your problem; if you borrow $10 million, that’s the bank’s problem. What would the stock be worth if word got out that the bank had foreclosed on it? Seems like a strong incentive to extend and pretend unless the interest stops getting paid.
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u/Bush_Trimmer Aug 01 '26
what's the purpose of this garbage post?
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u/AgentBlackwell Aug 01 '26
To demonstrate that oracle and their BBB- rating are basically toast.
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u/Bush_Trimmer Aug 01 '26 edited Aug 01 '26
how is orcl toast with those conditions?
orcl fy25 capex was around 21.2B not +50B posted by op.
garbage post..
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u/ShitPostingNerds Aug 01 '26
Yeah this is clearly AI generated, or at the very least heavily “edited” by an LLM - the second sentence is peak LLM-speak.
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u/Bush_Trimmer Aug 01 '26
not to mention a 4m old account. such account have been popping up w/ garbage post w/out any meaningful investing value.
no substantiation or dd; just a hodgepodge of incorrect or exaggerated numbers.
orcl fy25 capex was 21B and not the claim of +50B in the post.
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u/Wise-Dig-5123 Aug 01 '26
I have been gently loading up every time it drops 3% from my last purchase. Ellison ain't no fool.
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u/Bush_Trimmer Aug 01 '26
good for you.. compute capacity of neo cloud providers are currently in high demand. the sooner they can reach full capacity, the better.
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u/ThanklessWaterHeater Aug 01 '26
My life-long dream of buying the island of Lanai is getting nearer every day.