00:00The other big story is Oracle, because it's getting slammed pre-market.
00:02What exactly is going on?
00:04Yeah, so two things going on here.
00:05One, revenue's growing great, but not really any faster than the market expected.
00:10If you look at the kind of forward guide for the fiscal 2027,
00:13talking about $90 billion of revenue.
00:15The market's at $88, $89, so, you know, pretty much in line.
00:20And at the same time, you've got investment going up.
00:23So they spent $56 billion in the year, just finished, rather than $50.
00:27And they're now talking about $70 plus for the forward year.
00:32Now, the market was probably not far off $70.
00:34But I think that the direction of travel is they're spending more rather than less.
00:37And so I think people are kind of a little bit worried that, OK, you know,
00:40the shares have gone up a lot.
00:42To keep that momentum, we need to see a better revenue picture on the back of this investment.
00:47That's not happening just yet.
00:49There's just a lot of news out there in the tech world.
00:51I know we had this great interview with Daryl Muday.
00:53I mean, what's your main standout from actually what we're living through in the tech?
00:57Is it the kill switch from the government that we need to look out for?
01:00Or is it just these new language models and the IPOs?
01:03I think it's the IPOs.
01:05It's the enterprise momentum.
01:07It's that kind of pivot from enterprises still, to a degree, playing around with AI
01:12and really kind of going fully in on it.
01:15And I think, though, in the next 12 months, that's going to be the kind of real sense check
01:21on whether all of this investment going into AI infrastructure is going to ultimately lead to a stronger return.
Comments