{"id":81954,"date":"2025-10-18T02:26:07","date_gmt":"2025-10-18T02:26:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/81954\/"},"modified":"2025-10-18T02:26:07","modified_gmt":"2025-10-18T02:26:07","slug":"us-stocks-end-volatile-week-on-a-positive-note","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/81954\/","title":{"rendered":"US stocks end volatile week on a positive note"},"content":{"rendered":"

Analysts generally like what they heard from Oracle, but shares are down<\/a><\/p>\n

The big news out from the Oracle<\/a> AI World conference was broadly positive: that margins on cloud infrastructure can be as high as 35%<\/a>, and that the company predicts $166 billion in infrastructure revenue by 2030. <\/p>\n

And in the wake of that news, today UBS raised its price target for Oracle shares to $380 from $360, saying they are undervalued. <\/p>\n

But investors appear to have some concerns about Oracle\u2019s huge capex plans, which are fueled by huge AI infrastructure deals with OpenAI and Meta<\/a>, as shares dropped over 7% in Friday trading. <\/p>\n

Analysts have pointed to Oracle\u2019s high cash burn as it pursues its AI build-out and potential financing needs as flies in the ointment that could blunt the impact of the company\u2019s strong longer-term growth forecasts. <\/p>\n

On Friday, Jefferies analysts wrote:<\/p>\n

\u201cQuestions remain about ORCL\u2019s capex requirements to meet growing demand, as there was no forward-looking commentary on capex at the Analyst Day. Capex will need to ramp in line with [Oracle cloud infrastructure] revenue growth, raising concerns about ORCL\u2019s financing options to support this expansion.\u201d<\/p>\n

However, if that\u2019s the reason why the stock is getting hit today, it would mark a distinct change in how investors are evaluating the AI trade. Companies have tended to be increasingly rewarded for their aggressive capex commitments to enhance the boom, based on optimism that investments in this would-be revolutionary technology will bear fruit.<\/p>\n

Friday\u2019s dip comes on the back of a strong run leading up to the yesterday\u2019s investor conference, fueled by a flurry of AI headlines. Oracle shares have gained over 18% in the past three months and more than 70% so far this year, well outpacing the Nasdaq\u2019s approximately 7% and 16% rise over the same time periods.<\/p>\n","protected":false},"excerpt":{"rendered":"Analysts generally like what they heard from Oracle, but shares are down The big news out from the…\n","protected":false},"author":2,"featured_media":81955,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[114,85,46,190],"class_list":["post-81954","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-il","tag-israel","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/81954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=81954"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/81954\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/81955"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=81954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=81954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=81954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}