SMALL IS BIG...
The Russell 2000 US small-caps index is extending the break out move. This looks like an inverse head and shoulders formation. Plenty room to run before we reach trend channel highs. Source: LSEG, The Market Ear
US cyclicals vs. defensives up 13 days in a row.
Goldman's Coppersmith: "You don’t get moves like this unless the market is starting to lean into a better growth outlook". Source: LSEG, The Market Ear
They are all cutting target price on Oracle $ORCL...
Goldman PT New $220, Old 320 JPMorgan PT New $230, Old 270 Cantor PT New $320, Old 400 Barclays PT New $310, Old 330 Evercore PT New $275, Old 385 Scotiabank PT New $260, Old 360 TD Cowen PT New $350, Old 400 Melius PT New $260, Old 400 Source: zerohege
The Dow started trading on May 26, 1896.
Yesterday it closed at the highest level ever. Congrats to investors who used the events on this chart as reasons to buy, not panic. Source: Ryan Detrick
Oracle $ORCL is exposed to massive concentration risks..
It has $125 billion debt, of which $25 billion is due in three years. Meanwhile, FCF is already negative, and its largest customer, OpenAI, needs to raise $207 billion by 2030 to meet its obligations. Source: Oguz O. | 𝕏 Capitalist 💸 @thexcapitalist FT
Largest IPOs in History (by amount raised):
1. SpaceX $30.0B* 2. Saudi Aramco $29.4B 3. Alibaba $21.8B 4. Softbank $21.3B 5. NTT Mobile $18.1B 6. Visa $17.9B 7. AIA $17.8B 8. ENEL SpA $16.5B 9. Facebook $16.0B 10. GM $15.8B Elon would take the top spot. Source: Morning Brew, Bloomberg
Oops... here's why Asian markets are rather weak this morning (despite FED rate cut) and that Nasdaq futures and bitcoin are dropping...
BREAKING 🚨: Oracle $ORCL got nuked on earnings 📉📉 $ORCL falls after missing on Q2 adjusted revenue 💵 Adjusted revenue: $16.06B vs $16.21B expected 💲Adjusted EPS: $2.26 vs $1.64 expected ☁️ Oracle Cloud Infrastructure revenue: $4.1B vs $4.09B expected The "Open AI" complex is likely to get under pressure again (Softbank is down -6% this morning) Source: Barchart
Oracle currently carries $127B in debt, with $25B due within three years.
Despite this, the company is free cash flow negative, reporting roughly –$13B over the past 12 months, and it's not expected to be FCF + before 2028! Source: Patient Investor @patientinvestt
