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- 🗞️ Oracle Sinks 11%
🗞️ Oracle Sinks 11%
Big Moves Decoded: DOW, WDC, NFLX
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Market Performance
S&P 500: 6,886.68 ⬆️ 0.67%
Nasdaq: 23,654.16 ⬆️ 0.30%
Dow Jones: 48,057.75 ⬆️ 1.1%
Oracle's AI Ambitions Hit a Speed Bump
Oracle's (ORCL) AI infrastructure bet is showing cracks.
The database giant's shares plunged 11% after reporting Q2 revenue of $16.06 billion, missing the $16.21 billion estimate, despite securing massive AI contracts, including a $300 billion commitment from OpenAI.
Oracle's capital expenditure guidance jumped from $35 billion to $50 billion, while free cash flow turned negative by $10 billion (analysts expected negative $5.2 billion).
The company's aggressive data center buildout is raising serious questions about financing and debt levels, even as remaining performance obligations soared 438% to $523 billion.
The ripple effect hit the broader AI sector—Nvidia and AMD each dropped 1%, while CoreWeave slid 3%.
Oracle's new co-CEOs, Clay Magouyrk and Mike Sicilia, face a delicate balancing act: maintaining investment-grade debt ratings while funding unprecedented infrastructure expansion.
ORCL stock has a Ziggma score of 54 and ranks above most peers in terms of profitability and financial health.
The tech giant has surged over 150% in the past three years and trades at a steep valuation in December 2025.
Our Takeaway
Oracle's stumble reveals a harsh reality—the AI infrastructure race requires staggering capital with uncertain payoff timing.
While the $523 billion backlog validates demand, negative cash flow and mounting debt concerns signal investors are questioning whether Oracle can execute without overleveraging its balance sheet.
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Market Overview 📈
The Federal Reserve delivered its third consecutive rate cut on Wednesday, lowering the federal funds rate to 3.5%-3.75%, sparking a rally across equity markets.
The S&P 500 climbed 0.7% and briefly touched its previous record closing high, while the Dow surged 497 points in its strongest session in weeks.
The central bank announced plans to expand its balance sheet by purchasing short-term bonds, pushing Treasury yields lower.
More significantly, the Fed shifted focus toward the weakening labor market, removing language stating unemployment "remained low"—signaling greater attention to economic support over inflation concerns.
Chair Jerome Powell virtually ruled out rate hikes for 2026, though the Fed's dot plot projected only one cut next year.
Markets disagreed: fed funds futures priced in a 77% probability of two additional cuts in 2026.
The Russell 2000 hit all-time highs as small-cap stocks rallied on prospects of lower borrowing costs, while regional banks jumped over 2% on expectations of increased lending activity.
Stock Moves Deciphered 📈
🧱 Celanese Corporation (CE)
The specialty materials company gained ground after it forecast positive Q4 earnings.
Trading at a significant discount to fair value, CE attracted investor attention despite broader headwinds in the chemical sector.
The company's diversified materials portfolio and cost management initiatives supported the modest uptick in share price.
🚀 Western Digital (WDC)
The data storage leader surged 7.32% to an all-time high, driven by explosive demand for AI infrastructure and data center storage solutions.
With hyperscalers continuing massive capital expenditure programs, WDC's positioning in high-capacity enterprise drives and flash memory products has investors betting on sustained momentum through 2026.
🚗 Uber Technologies (UBER)
Shares tumbled 5.5% as multiple headwinds converged.
Intensifying European regulatory pressure, the company's decision to eliminate EV driver bonuses, and Morgan Stanley's price target downgrade combined to shake investor confidence.
The regulatory environment remains Uber's biggest obstacle to sustained profitability in key international markets.
Headlines You Can't Miss 👀
📊 Employment Cost Index rose 0.8% in Q3—below the 0.9% estimate and the smallest gain since Q3 of 2020, easing Fed inflation concerns.
🎯 10 S&P 500 stocks hit all-time highs—including Ross Stores, TJX Companies, Bank of NY Mellon, Citizens Financial, and State Street.
💼 Trump begins final Fed chair interviews—Kevin Warsh and Kevin Hassett meet with President Trump and Treasury Secretary Bessent this week.
📉 T-Mobile, Campbell Soup hit 52-week lows—Five S&P 500 stocks touched new lows, including Mondelez and Air Products.
🎲 GameStop drops 6% after earnings miss—Revenue of $821 million fell short of analyst estimates.
🦅 Blue Owl Capital upgraded to strong buy—Raymond James raised rating, citing manageable redemption risk, shares jumped 3%.
📱 Braze surges 18% on revenue beat as the consumer engagement platform posted Q3 revenue of $191 million vs. $184 million estimate.
Trending Stocks 📊
✈️ AeroVironment (AVAV)
The drone manufacturer plummeted 12.85% after reporting fiscal Q2 adjusted earnings of just $0.44 per share—significantly below the $0.78 estimate.
While revenue of $473 million slightly beat expectations, the profit miss raised concerns about margin pressure and execution challenges in scaling defense technology production.
💨 GE Vernova (GEV)
Energy infrastructure shares soared 7% following upbeat guidance.
The company indicated 2025 revenue would trend toward the high end of its range while doubling its quarterly dividend to $0.50 per share.
GE Vernova's strong positioning in power generation and grid infrastructure continues to attract investor enthusiasm.
🎬 Netflix (NFLX)
The streaming giant dropped 4.1% following an analyst downgrade after announcing a bid for Warner Bros. studios.
The six-day losing streak reflects investor unease about the company's content acquisition strategy and pricing power.
Concerns about subscriber growth saturation and escalating content costs continue to pressurize the stock.
What’s Next?
Key market and macro news 👇
🧑✈️ Initial Jobless Claims – Weekly labor market health snapshot
📈 U.S. Trade Deficit data – September trade balance insights
🎤 Broadcom Earnings – Critical AI and semiconductor sector indicator
🛒 Costco Wholesale Earnings – Consumer spending and retail health barometer
👕 Lululemon Athletica Earnings – Premium retail and discretionary spending gauge
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