8 Oct 2025

Oracle $ORCL was the market mover yesterday, down -2.5% and driving Tech stocks, the S&P500 and cryptos lower. So what happened?

A month ago Oracle stock soared after forecasting extraordinary growth: "We signed four multi-billion-dollar contracts with three different customers in Q1," said Oracle CEO, Safra Catz. $455B in contract backlog. Multi-billion-dollar deals. But according to The Information, newly surfaced internal documents paint a very different picture. Oracle’s AI cloud margins are razor-thin around 14 cents of profit for every $1 in Nvidia server rentals. That’s less than most retail businesses, and in some cases, the company’s actually losing money. The data shows margins fluctuating between 10% and 20%, averaging just 16%. And reportedly, Oracle lost nearly $100 million last quarter renting out Blackwell chips, the very product driving its “AI boom.” The first crack in the matrix? Not really. This looks more like margin issue rather than a demand issue. Basically, this is not about Oracle not finding customers for renting their GPUs but customers asking for good deal or they go elsewhere. As a result, Oracle margins have not been that strong. Source: STockMarket.news

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