Exclusive to channel members: The Oracle drama - $ORCL
While everyone is talking about AI, we dive into the numbers that truly move the market.
Tech giant Oracle reveals an aggressive plan that combines massive cuts alongside massive capital raises.
Here are the report's highlights:
1. Extensive layoff wave. The company plans to part with 20,000 to 30,000 employees.
The goal: freeing up a budget of approximately $8-10 billion for AI growth engines.
As part of the move, Oracle is considering selling operations, including the Cerner healthcare division.
2. Aggressive capital raising (while the stock is at a low)
After losing approximately 50% of its value since last September (a $460 billion market cap wipeout), the company announces a raise of $45-50 billion in 2026.
Half of the amount: stock offering (shareholder dilution).
Half of the amount: bond offering.
3. Everything goes to cloud and AI. The money is earmarked for building cloud infrastructure for giant clients: Meta, Nvidia, xAI, and of course OpenAI.
The contract with OpenAI alone is estimated at $300 billion, but the fact that OpenAI is not yet profitable raises serious questions about the return on investment.
The main worrying point is that Oracle's free cash flow is expected to remain negative until 2030.
The company is betting everything to become the leading AI infrastructure player, even at the cost of heavy financial pressure and investor dilution.
The market is still digesting the non-standard announcement released today. We are following - and will update.
The stock reacts with a 5% rise.