Oracle has been interesting business recently. They are spending $56bn on capital to build datacenters. They are trying to be a hyperscaler but they don't have luxury of cash flows like other hyperscalers to bear this huge capex, so they are spending it with taking huge debt and more capex is projected to raise around $40bn with new debt.
Due to this hug capex spending Oracle won't have to pay premium for compute like it's long time competitor SAP.
Interesting part to see will be, will normal SaaS comapnies who are choosing to rent the compute will benefit or lose than the Oracle who is making its own compute in its core SaaS business?
Probably market is confused how should they categories Orcale, Saas or hyperscaler? It's getting beaten down heavily due to uncertain results of this spending and cash deficit, when other SaaS stocks and hyperscalers are showing signs of recovery.
It's fate will depend on scale of penetration and need of AI in SaaS and also how much ROI hyperscalers will make on their capex spending?
What do you think where its heading and when it will get base?