Jake Street

🦔 Oracle laid off between 20,000 and 30,000 employees Tuesday morning, roughly 18% of its global workforce, via a single email sent at 6am EST with no prior warning. System access was revoked almost immediately after. The cuts are expected to free up $8-10 billion in cash flow. Oracle's stock has lost more than half its value since September 2025 and the company now carries over $124 billion in debt, up from $89 billion a year ago, with free cash flow running negative $10 billion last quarter. My Take Oracle posted a 95% jump in net income last quarter and still eliminated 18% of its workforce by email before most people finished their morning coffee. This is not a company in distress in the traditional sense. It's a company that made an enormous debt-funded bet on AI infrastructure and is now converting its workforce into cash flow to service that debt. We've covered Oracle's AI gamble for months. The $300 billion OpenAI deal through Stargate, $50 billion in capital expenditure this fiscal year, over $124 billion in total debt. Multiple US banks have pulled back from financing Oracle-linked data center projects. Bondholders have sued Oracle claiming it concealed how much additional debt the OpenAI deal would require. The credit default swap spread hit a three-year high earlier this year, meaning debt investors are genuinely nervous about getting paid back. The workers who got that 6am email built the products Oracle has monetized for decades. The bet that eliminated their jobs was made by people who were already paid regardless of how it turns out. That is the part of the AI infrastructure race that doesn't show up in the capex announcements. Hedgie🤗

CALL TO ACTION: Tell President Trump, your Congressional Rep, & your Senators that you don't support American boots on the ground in Iran. White House Comment Line: (202) 456-1111 Congress Switchboard: (202) 224-3121 This is how We the People make our voices heard. 🇺🇸

It’s not the sun

Kilmeade: What do you say to people like Bernie Sanders who says billionaires don't pay their fair share? Dimon: I don't know what he means by fair share