CNBC's "Fast Money" Oracle Hits A Snag… And How Prime Day Could Boost Retail’s Slump 10/7/25
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Oct 7, 2025 Oracle is facing cloud margin pressures related to Nvidia chip costs, raising concerns about the AI sector's stability. Meanwhile, Amazon's Prime Day and strategic sales might breathe life into struggling retail stocks. Experts discuss consumer trends, inventory strategies, and how off-price retailers like TJX could benefit. In the commodities market, gold prices are soaring amid institutional buying, sparking debates on sustainability. Finally, sector picks for investment opportunities are shared, focusing on defensive plays and resilient homebuilders.
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AI Infrastructure Compresses Margins
- Oracle's cloud margins may be much lower than headline software margins, revealing hidden capital intensity in AI builds.
- The market is re-evaluating long-term profitability of big AI infrastructure deals versus short-term margin pressure.
Margin Gaps Drive Repricing
- Market reaction to margin disclosures can be outsized because investors compare legacy software margins to lower cloud margins.
- The headline gap between 70% software margins and mid-teens cloud margins changed perception of Oracle's profit profile.
Broaden How You Play AI
- Broaden your AI exposure beyond headline names to infrastructure, energy, and end-market users like healthcare and financials.
- Diversify to capture AI's widespread adoption rather than betting only on core AI chip or model names.