Wall Street Breakfast Wall Street Roundup: red flag, green flag
Sep 12, 2025
Oracle's stock skyrockets 85% YTD, while Adobe faces challenges despite solid earnings. Broadcom and Nebius gain momentum through customer acquisitions. Lululemon's post-earnings drop raises red flags amid tariff issues. Mixed signals in the stock market and weaker job data create uncertainty as investors await the Fed's crucial interest rate decision. The IPO market shows signs of life, with discussions on small cap stocks emphasizing the need for careful research in a volatile financial landscape.
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Contracts Drive Oracle's Rally
- Oracle's stock surged despite missing quarterly numbers because it disclosed massive future contracts worth ~$455B in remaining performance obligations.
- Investors are valuing forward-looking contract wins over near-term earnings when pricing AI/cloud winners.
AI Adoption Without A Monetization Pop
- Adobe beat and raised but traders worry AI adoption hasn't translated into strong monetization yet.
- Steady digital-media growth shows progress but not the explosive AI revenue investors crave.
Contract Wins Move The AI Cluster
- Large customer contracts (Broadcom, Nebius, Oracle) are triggering big stock moves across AI-related names.
- Market behavior treats a small group of AI leaders as a de facto sector, amplifying correlated rallies.