How Oracle’s stock fares after it reports results on Tuesday will depend largely on which storyline Wall Street chooses to focus on.
“We’ve been reading a lot of analyst reports, and we’ve read quite a few that show an expectation of upwards of $100 billion for Oracle to go out and kind of complete these buildouts,” said Magouyrk last quarter, referring to outside estimates of the company’s planned capital expenditures. “And based on what we see right now, we expect we will need less, if not substantially less money raised than that amount to go and fund this buildout.”
According to founder and executive chairman Larry Ellison, this is all in service to Oracle’s three-step transformation. Ellison told investors last quarter that the first step was Oracle making its database available inside its competitors’ clouds, including Amazon’s AWS, Alphabet’s Google, and Microsoft’s Azure. Step two was “vectorizing” the data to make it readable by AI models, which makes the data customers have in Oracle’s systems more valuable, said Ellison. Third, Oracle built what Ellison called an “AI Lakehouse,” which vectorizes all a company’s data and not just what’s in Oracle databases or applications.
“Training AI models on public data is the largest, fastest-growing business in history,” Ellison said. “AI models reasoning on private data will be an even larger and more valuable business. Oracle databases contain most of the world’s high-value private data.”
