The Rundown Oracle Shares Nosedive on Sales Miss, OpenAI Makes $1B Deal For Disney Character Rights
Dec 11, 2025
The podcast dives into the Fed's recent decision to cut rates by 25 basis points, stirring market reactions. Oracle's disappointing sales figures raise concerns amid AI infrastructure growth. Disney's groundbreaking $1 billion deal with OpenAI for AI-generated character content steals the spotlight. Additionally, Eli Lilly celebrates promising results from its new weight-loss drug, potentially reshaping its market stance. The episode also highlights challenges facing Oxford Industries and skims on SpaceX's soaring valuation and looming IPO.
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Fed Leaves Door Open For More Cuts
- Jerome Powell signaled more rate cuts could come in 2026 if the labor market keeps weakening.
- The Fed faces a trade-off as inflation creeps up while employment softens, shifting priorities to jobs for now.
AI Buildout Isn't Yet Turning Into Revenue
- Oracle's cloud and infrastructure growth missed estimates despite strong AI demand, raising investor concern.
- Heavy CapEx plans and negative free cash flow increase risk if OpenAI or AI demand disappoints.
Huge Backlog Creates Concentration Risk
- Oracle's remaining performance obligation jumped to $523 billion, driven by big commitments from Meta, NVIDIA and OpenAI.
- Yet heavy dependence on a few partners and rising debt make that backlog a double-edged sword.