Wall Street Breakfast Wall Street Roundup: market reacts to earnings
9 snips
Dec 12, 2025 Oracle's mixed results led to an unexpected 11% drop, while Broadcom's strong performance is tempered by worries over margin pressures. AutoZone's earnings miss signals broader economic challenges. Airlines enjoyed a relief rally post-government shutdown, highlighting sector resilience. A fierce streaming bidding war is underway, raising antitrust concerns. Upcoming earnings from Nike and FedEx could shed light on consumer spending habits, amidst fluctuating market sentiments about AI and persistent uncertainties in Federal policies.
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Oracle's Growth Masked By Cost Concerns
- Oracle's latest quarter showed big growth in remaining performance obligations but the stock fell 11% amid revenue misses and rising expenses.
- Brian Stewart highlights investors' worry that cloud spending and debt are growing faster than revenues.
AI Revenue Mix Pressures Margins
- Broadcom reported strong results but warned of margin pressure from a higher mix of AI revenue on the conference call.
- Brian Stewart says costs tied to AI revenue mix are undercutting headline earnings gains.
Cost Pressures Hit Beyond Tech
- AutoZone missed expectations as inflation raised costs and squeezed margins despite sales growth.
- Brian Stewart notes cost pressures are hurting non-tech companies too, not just AI-related firms.