CNBC's "Fast Money" Oracle Drops Back Down To Earth… And State Of the Consumer Ahead Of Holidays 11/12/25
Nov 12, 2025
Gil Loria, Head of Technology Research at DA Davidson, discusses Oracle's declining shares post-earnings and the implications for the AI sector. He highlights the risks associated with Oracle's debt and backlog, advising caution for other AI companies. The conversation shifts to the holiday retail outlook, with On Holdings showing strong results, indicating a vibrant consumer market as Christmas approaches. Loria offers insights on retail winners like Walmart and Amazon, setting the stage for a competitive holiday season.
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Oracle's AI Hype Implosion
- Oracle's AI-driven rally reversed quickly as investors questioned debt-fueled data center promises.
- The stock retraced its entire post-earnings gain amid concerns about low-margin backlog and rising interest costs.
Debt-Funded AI Builds Amplify Risk
- Market sentiment shifted when AI capacity was funded with debt rather than cash flow.
- Debt-funded buildouts amplify risk because higher interest and lower margins can trigger a negative spiral.
Hyperscalers Versus 'Bad Behavior' Builders
- Gil Loria called Oracle and CoreWeave examples of 'bad behavior' in the AI buildout versus responsible hyperscalers.
- He said hyperscalers have customers, cash, and pre-sold capacity, while Oracle overpromised backlog tied to OpenAI.