He's also put up 40B for WB as well.
that's literally what the OP is about......the 346mm shares are pledged as loan collateral for......
The NYT ran a piece yesterday asking whether Ellison will end up the face of the AI bubble. Forget the framing, the numbers underneath are wilder than the headline.
Oracle burned $55.7 billion in capex last fiscal year, more than double the year before, nearly all for AI data centers. They're carrying over $124 billion in long-term debt now and free cash flow hit negative $23.7 billion. S&P downgraded them.
Ellison personally pledged 346 million shares as collateral on loans. Those shares were worth about $107 billion when he disclosed it last September. At today's price they're closer to $40 billion. The board says these are term loans, not margin accounts, and he can repay without selling. Fine.
Same week: Nasdaq 100 in correction. The chip index entered a bear market, down 25% from June. The AI hedge fund Situational Awareness lost 67% in July and fire-sold its book to Citadel. Apple, which barely spent on AI infra, briefly crossed $5 trillion.
Oracle's cloud backlog did hit $638 billion, a record, so these aren't unfunded dreams. If that converts, the spending was rational. But one person's fortune and one company's solvency sitting on the same bet just makes the concentration the story by default.
He's also put up 40B for WB as well.
that's literally what the OP is about......the 346mm shares are pledged as loan collateral for......
Niceeeeee
He liquidated already and now buying back stocks. He is not a retail trader fyi.
Ok, Larry
My life-long dream of buying the island of Lanai is getting nearer every day.
Top tier comment
This is actually pretty worrisome. I hope the state of Hawaii can purchase the land if Ellison needs to sell before someone like Musk buys it.
Oracle moved its HQ from Texas to Tennessee to get some state tax breaks after moving from California to Texas If a corporation has to chase tax breaks like this, I start question the overall health of the company
most of them are doing the ireland or cayman islands thing. amazon, meta, apple etc. they're all doing something. meta is doing tax breaks for ohio data centers... do they really need that? who knows. but they're all clearly obsessed with spending a few percent less.
Cruise companies do it also.
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Damn, what a wHQore!
A person or household can have a major advantage financially by doing the same thing. It's not all that illogical, or even suprising.
The move from California for Texas during the pandemic has been disastrous for the biggest names. Since Tesla moved to Texas on 12/2/2021, it's only really worked out for Chevron:
| Texas | Total Returns | vs. Benchmark | |:--|:--|:--|:--| | TSLA | (-13.92%) | (-88.87%) | | ORCL | +53.84% | (-21.11%) | | SCHW | +39.72% | (-35.24%) | | CVX | +104.74% | (+29.79%) | | S&P 500 | +74.95% | -- |
Meanwhile, each of California's 18 biggest companies have trounced the market besides Netflix. In fact, #19 was Sandisk, the absolute best performer in the S&P 500, but I stopped there because it wasn't even its own company until the beginning of 2025.
| Texas | Total Returns | vs. Benchmark | |:--|:--|:--|:--| | NVDA | +526.86% | +451.91% | | GOOGL | +151.16% | +76.21% | | AAPL | +92.95% | +18.00% | | AVGO | +668.38% | +593.43% | | META | +80.77% | +5.81% | | AMD | +216.00% | +141.05% | | V | +91.08% | +16.13% | | CSCO | +135.97% | +61.02% | | INTC | +96.47% | +21.52% | | AMAT | +260.22% | +185.27% | | LCRX | +365.15% | +290.19% | | NFLX | +16.32% | (-58.63%) | | PANW | +271.94% | +196.99% | | WFC | +97.74% | +22.79% | | KLAC | +375.06% | +300.11% | | ANET | +485.17% | +410.22% | | AMGN | +120.54% | +45.59% | | WDC | +1171.18% | +1096.23% | | S&P 500 | +74.95% | -- |
At the level of wealth he has, he can just pump it up with his other billions of dollars.
Why? No point in chasing tax brakes unless you are profitable. This seems more like a sign of health then the opposite.
"When you owe the bank one-hundred dollars, that's your problem. When you owe the bank one-hundred million dollars, that's the bank's problem." -JPG So whose problem is it when you owe the bank one-hundred billion dollars?
God's problem 😅
Tax payers.
The governments.
The fact his collateral lost value is no indication that he can't repay his loan or that these is a problem or that the loan is 100 billion.
A lot of loan math classically goes out the window when you're that rich too. Because they know you're worth it, so there's generally not that question on you paying back loans. Where as say you're a broke ass college kid with under 5k in the bank, ya they want a lot of terms on the loan because there's good reason to believe you wont be able to pay it. So makes ya wonder how many blind yes-man handshakes are happening behind the scenes here.
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HAHAHAHAHAHA Screw the billionaires that are actively trying to make life miserable for us.
How are you miserable because Oracle is building AI infrastructure?
Do something to actually solve what you see to be a problem praxis -- I say, hypocritically.
My taxes would wanna have a word.
I bought at 126 and sold at 130…. I’ll be back under 126
Either him or Son
Yea the two of them are essentially the same person, Larry groomed his kid into a mini him. Si any billion he loses, doesn’t matter, his kid is a billionaire still. That's how rich people work. They dint care about the now, they care about outbreeding poors and having a legacy.
what's the purpose of this garbage post?
To demonstrate that oracle and their BBB- rating are basically toast.
Yeah this is clearly AI generated, or at the very least heavily “edited” by an LLM - the second sentence is peak LLM-speak.
Person or company leftist rerditors don't like? Constant onslaught of any and all negative perspectives related to any kind of news about them.
Broken left wing narrative. Comes to reddit for support and validation.
The numbers are fucking grizzly on paper but the cloud growth and sales numbers do support their ability to convert. I think investors will remain very sour on Oracle until we see the next two quarters. After listening to their last call, you can see why they’re optimistic. My personal belief is Oracle will be just fine and their capex will be mostly rewarded eventually. In the event of a large and sustained macro slump it will be ugly but that’s pretty uniform across most tech right now I do have an opposite bias, however. I used to work at Oracle in B2B cloud sales and I fucking hate the company, Larry was an embarrassing subject among even us coked out alcoholic sales guys and that’s saying *a lot*
Could you expand on how you think their numbers support the argument to convert into the revenue numbers they claim
Yeah unless oracle revenue or profit drops what's the real issue? It's a long term play by one of the biggest cloud and IT hardware infrastructure companies with $700B in purchase commits from customers.
A majority of their backlog is tied to OpenAI. So it’s ride or die with them. If OpenAI lives up to the deal, Oracle will be fine. If not, going to be a rough ride. As it seems everyone else is choosing one of the 3 big cloud providers.
Fully depends on OpenAI. They still need to raise capital to stay competitive, and it feels like AI profitability is a growing concern across the market.
Ellison doesn't care, he's an elderly man who is living in fear of mortality and wants to live forever. He sees AI and superintelligence as the fastest path to immortality. For him, it's a race to come up with an AI that can give him immortality and life extension before he dies of old age. That's why he's going all in on this stuff. He doesn't care if he goes massively into debt and ruins his company in the process, nothing else matters other than trying to live forever. He's always been a technocrat supervillian, this is just his next phase.
Hes also got a carbon clone son who'll follow his plans to a T once he does pass, so he's got nothing to care about, his legacy is set.
Craziest theory about a stock I’ve heard in a while.
Rich, and powerful people don't get margin called. US govt. will bail them out if needed. Another example is Musk / TSLA / SPCX.
They don't get margin called because these deals aren't based on margin. Pledged collateral isn't margin based...
While short term pain is looking real, I can’t imagine the capex to not pay off or at least break even.
Agreed. Imagine if Apple had $700B (and growing) iPhone order backlogs and spent $100B building production to produce them. Nevermind apple only has a 50% margin and Oracle has 68% Nevermind they're building data centers faster than anyone and are trying to meet massive demand that only seems to be growing. Nevermind that everyone of the top 50 tech companies is spending billions to hundreds of billions on AI vendor orders, even Apple even though the sum is lower compared to others.
Oracle was always a no-name shitcoin, what did they
Zitron has been saying that Oracle would be the big loser if the AI bubble bursts.
Kendall Roy about to bring in some new directors.
Couldn’t happen to a nicer guy. Larry has kept a low profile since the 90s, when it started to leak out what a scumbag he was - he had his own little Epstein island on his California compound, a harem of young Asian girls. Why do you think he wound up buying Lanai?
Pro: Larry Ellison goes bankrupt, glad to see it. Con: taxpayers will somehow be on the hook to bail him out.
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Wont happen cuz hes fully backed by israel And israel and mango have been in an alliance for years. Both govts will just toss him even more govt contracts. Like mango did before the last oracle earnings.
God it would be so good if Oracle went bust. They innovate fuck all and just buy competition and shitcan any progress anyone could have made. Trying to be an Oracle admin is so fucking frustrating because it’s using ux design from the 90’s and the only reason anyone puts up with it is there’s no real competition for many of the products they sell.
Unlike some companies in the AI space, ORCL has positive current earnings, and pays a dividend...with a current P/E ~22-23, it looks like a relative bargain.
Am I suppose to feel sorry ?