Oracle's Record High and X's Right-Wing Lean | Bloomberg Technology

13 Jun 2024 (6 months ago)

Oracle and Cloud Infrastructure

Oracle reported strong earnings, driven by growth in its cloud infrastructure business.
The company signed a significant partnership deal with Microsoft and OpenAI, validating its cloud capabilities.
Investors are optimistic about Oracle's healthcare data focus despite its lack of substantial growth, due to strong cloud infrastructure bookings.

The broader markets experienced record highs, with the S&P 500 and Nasdaq gaining over 1% and 1.8%, respectively.
The Consumer Price Index (CPI) print showed a 3.4% year-on-year growth, the lowest in three years, leading to a drop in the two-year yield.
Bitcoin continued its upward trend, indicating a risk-on sentiment in the markets.
Technology stocks are expected to continue leading the market higher due to the early stages of the AI revolution and strong balance sheets.

Apple surpassed Microsoft as the top-performing company, despite not expecting double-digit growth, due to positive developments in China and talks of AI integration.
Broadcom is expected to report a 38% increase in revenue for the fiscal second quarter to $2.1 billion.
The S&P 500, technology stocks, and the bond market are all experiencing record highs.
The CPI inflation rate reached 3.4% year-on-year, the highest in three years, which could influence the Federal Reserve's decision on interest rates later in the year.
Apple surpassed Microsoft in market capitalization, becoming the first company to reach a $3 trillion valuation.

Tesla's shareholder meeting will take place tomorrow, where Elon Musk's $56 billion pay package will be voted on.
Investor Ross Gerber opposes the pay package, arguing that it perpetuates the mistakes made by Tesla's board of directors and sends the wrong message to shareholders.
Tesla has been actively campaigning for the pay package, with Elon Musk threatening to leave the company if he doesn't get what he wants.
Ross Gerber expresses concern about Tesla's performance under Elon Musk's divided attention and suggests that the company could suffer if he leaves.
Musk is facing allegations of pursuing women working at SpaceX, but Ross Gerber, a shareholder, believes these claims should not be taken seriously without proof.
The vote on Musk's pay package is non-binding and has no legal consequences, but Tesla hopes to use it as part of their appeal in the Delaware Court.

Only 7% of organizations have mature AI implementations in the workplace.
Employees who use AI daily report the highest productivity gains (89%), compared to only 39% of those who use it monthly.
There is a lack of AI literacy and training for employees, leading to pushback and resistance to AI adoption.
Organizations need to improve AI literacy and create expectations about how to use AI effectively.
Paige Costello, from a wealth management platform, emphasizes the importance of AI literacy and having an AI council to creatively deploy AI tools.
AI hallucinations (errors) are being closely monitored, and Paige Costello highlights the importance of context in AI tasks to ensure accuracy.

Paramount Chair Redstone rejected a deal to sell her media empire to the Oracle founder, but other bidders are waiting in the wings.
Sherry Redstone has ended negotiations for a merger between Paramount and Skydance Media due to various reasons, including a revised deal that would have resulted in a lower payout for Redstone.
Paramount's value has significantly decreased since the merger of Viacom, making it unlikely to receive a substantial deal that would benefit investors.
Potential buyers for Paramount include Jeffrey Katzenberg and former Disney CEO Bob Iger, among others.
The future of Paramount remains uncertain, with the possibility of cost-cutting measures and partnerships being explored.
Sherry Redstone may still consider selling her family holding company, which could impact the other shareholders of Paramount.

At the BBG Ventures Accelerate Summit, female diverse founders discussed the importance of constantly seeking customer feedback and adapting their products based on that feedback.
Susan Lyne, co-founder at BBG Ventures, believes that smart limited partners (LPs) understand that investing in diverse founders and solving societal challenges is not just about doing good but also about gaining a competitive advantage in the market.
Susan from BBG Ventures discusses the current state of seed funding, noting that seed rounds have increased from $2-2.5 million to $4-6 million in the past five years.
Despite the Federal Reserve considering rate cuts, Susan has not yet seen an increase in capital flowing from public to private markets.