Prof G Markets Why Oracle is Crashing Right Now
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Dec 16, 2025 
Gil Luria, a tech analyst at DA Davidson, dives into Oracle's alarming stock decline and discusses how OpenAI's massive commitments have pressured the company into risky moves. He highlights execution failures and rising debts as key issues affecting investor trust. Then, Helen Toner from Georgetown shares insights on Trump's AI executive order and the tension between state and federal regulations. She emphasizes the need for tech firms to address public skepticism about AI, revealing the political risks involved.
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Oracle's AI Bet Looks Precarious
- Oracle's stock plunged because investors fear its massive OpenAI-linked commitments may not materialize.
- Gil Luria explains Oracle borrowed heavily to build data centers for a contract that now looks uncertain.
Execution Shortfall Undermines Oracle's Pitch
- Oracle missed revenue partly because it couldn't build promised data centers fast enough.
- That failure undermines its core pitch as a faster alternative to hyperscalers, says Gil Luria.
Credit Markets Are Souring On Oracle
- Oracle's debt and huge operating-lease commitments raised alarm in the credit markets.
- Gil Luria notes CDS spreads at record highs, signaling higher borrowing costs ahead.