00:00 Speaker A
All right, time now for a look at Oracle as that company drops its latest quarterly results. Just taking a quick look through the numbers here. Uh bottom line EPS is 192. Uh street was closer to 175, so that’s a beat on their bottom line. Just look at the top line revenue. There it is, 19.35 billion. It was closer to 19.13 billion. So beats there on the bottom and the top.
00:27 Speaker A
Jeffries in its preview noting around 47% of Oracle’s backlog tied to a single leading AI lab. Is that a yellow flag to you, Cory?
00:41 Cory
You know, um, the reason it’s not, I’ll tell you what it’s not. But I’m a shareholder so you can say that I’m I’m biased in this and and you’re welcome to to think that maybe that’s true. But the reason it’s not is because the number is so huge. You know, when you’re looking at at RPOs, I’m looking at my model here at RPOs at at you know, uh they had a 30 about 300 sorry, 670 billion dollars in RPOs.
01:10 Cory
So you’re telling me that the fact that they’ve got 300 billion in RPOs that have nothing to do with Open AI, uh is is worrisome? I I they’ve got an enormous business without Open AI. What I’ll also say is if Open AI goes sneakers up, can’t pay its bills, doesn’t succeed as a business, the share price for Oracle is going to be the least of our problems. There are so many um uh investments across uh you know, the your program that every one of them is going to collapse if these guys can’t pay their bills.
01:46 Cory
So, we all have a concentration risk on on Sam Altman and on Dario Mo and and uh the the vested bet that um Anthropic and Open AI are going to succeed as businesses here in the next few years. Where they’re going to be 20 years from now, I don’t know that it matters really. But yeah, we’ve all got bets that are very concentrated on those two very big private companies. I was meeting with some just an hour ago down the hallway here. I was talking to some um people working with Anthropic, Anthropic partners and you know, they are they are pedal to the metal uh doing everything they can to learn better ways to use these products, to buy these products, whether they’re buying them directly from Anthropic, buying them through Amazon and their Bedrock product, buying them through Google.
02:29 Cory
These things are are being put to use by companies big and small right now and maybe that fails. But if they fail, Oracle’s not where your problem’s going to be, your problem is going to be falling from the skies like all of the stock market will be.
