Oracle's Q2 Results: The Real Story

Oracle's 2nd quarter results released last night has not de-railed the AI thematic, as suggested by headlines across financial media outlets. Still clocking in massive revenue growth (Oracle Cloud Infrastructure up 52%, GPU consumption up 336%), and more importantly, new customer growth — delivering diversification benefits to a supposedly "risky", highly-concentrated customer base after signing on OpenAI. The ink on that deal barely dry, and they've already added Meta.

The issue with the headlines is neither Oracle's debt-fuelled capex expenditure on data centres, nor the trajectory of AI adoption.

It is investors. And how irrational their perspectives can become, when the market's animal spirits are unleashed. Oracle was not the one pushing its share price higher, investors were.

Now, to be fair — the leverage concerns aren't baseless. But here's what matters more: