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- 📈 Oracle's AI Infrastructure Jackpot
📈 Oracle's AI Infrastructure Jackpot
Databricks Hits $3.7B Revenue Run, Meta's New Robot Brain Chip, Saudi Cloud Deal Backs AMD, Chime IPO Values $11.6B Fintech, GameStop's $1.75B Bitcoin Bet Continues
Evelio Silvera
June 12, 2025
Good morning.
⚡ The Fast Five → Databricks Hits $3.7B Revenue Run, Meta's New Robot Brain Chip, Saudi Cloud Deal Backs AMD, Chime IPO Values $11.6B Fintech, GameStop's $1.75B Bitcoin Bet Continues
🔎 Market Trends → S&P 500 ends lower; traders focus on Middle East tension; US Futures Turn Higher after Soft CPI Print
And now…
⏱️ Your 5-minute briefing for Thursday, June 12, 2025:
MARKET BRIEF
Before the Open
As of market close 06/11/2025.
Pre-Market
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Fear & Greed
Markets in Review
Wall Street Wavers as CPI Cools and Trade Deal Takes Shape
The Nasdaq slipped 0.5% and the S&P 500 dipped 0.3%, snapping a three-day win streak. The Dow held flat as investors sifted through a cooler inflation print and early details of a U.S.-China trade agreement.
The Big Picture:
Markets paused Wednesday after fresh CPI data showed inflation cooled slightly in May, thanks to easing energy prices. While the annual rate edged up to 2.4%, it stayed in line with expectations — a win for price stability hawks and doves alike.
Meanwhile, President Trump announced a framework deal with China, calling it “done.” Rare earths shipments will reportedly resume, and U.S. tariffs will stay elevated — at 55% — until the deal is finalized. Markets largely took the news in stride.
Despite the softer CPI, rate-cut hopes are dimming. With the labor market still humming, traders now expect the Fed to hold steady next week.
Market Movers:
Starbucks (SBUX) rose 4.3% as CEO Brian Niccol confirmed interest from investors eyeing a stake in its China unit, signaling confidence in cross-border demand even amid tariffs.
General Motors (GM) added 1.9% after unveiling a $4B investment in U.S. plants, a bullish nod to reshoring and dual-engine (gas + EV) growth strategy.
Chewy (CHWY) tumbled 11% despite beating on earnings, as its flat sales guidance failed to impress growth-hungry investors.
What They’re Saying:
“The refusal by the Fed to cut rates is monetary malpractice.” — Vice President JD Vance
WHAT WE’RE WATCHING
Events
Today: Bureau of Labor Statistics - Core Producer Price Index (PPI) m/m; PPI m/m - 8:30am
Why You Should Care: It's a leading indicator of consumer inflation - when producers charge more for goods and services the higher costs are usually passed on to the consumer
Today: Department of Labor - Unemployment Claims - 8:30am
Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy
Earnings Reports
Today: Adobe Inc., RH, Korn Ferry
Tomorrow: Coca-Cola, Toro Corp., Vroom, Inc.
MARKET BRIEF
Leading News
Oracle's AI Gold Rush Gets Real: Cloud Revenue Set to Explode 70%
Photo Credit: Boliviainteligente
Why it matters:
Oracle (ORCL) just delivered the kind of growth trajectory that makes even seasoned investors do a double-take—cloud infrastructure revenue projected to surge over 70% in fiscal 2026, signaling the company has found its footing in the AI infrastructure arms race.
Zoom Out:
The numbers tell a compelling story of transformation. Oracle's $15.9 billion in quarterly revenue (beating estimates by $310 million) represents an 11% year-over-year jump, but the real fireworks are in the forward guidance. CEO Safra Catz's bold projection of more than $67 billion in fiscal 2026 revenue—well above the Street's $65.18 billion consensus—suggests Oracle has cracked the code on monetizing AI demand.
This isn't your grandfather's database company anymore. With capital expenditures jumping from under $7 billion to over $21 billion in just one year, Oracle is making the kind of infrastructure bets that either create enormous shareholder value or spectacular write-offs. History suggests the former when demand is this robust.
The behavioral finance angle here is fascinating: investors are finally recognizing Oracle's pivot from legacy software to AI-era infrastructure, a transition that took longer than many expected but appears to be paying dividends.
Key Insights:
Insatiable demand: Larry Ellison's revelation that Oracle received an order for "all available cloud capacity" from one client suggests pricing power that should delight shareholders—when customers are willing to buy everything you can produce, margins tend to follow.
Strategic positioning: The OpenAI Stargate partnership and deals with Temu's infrastructure migration demonstrate Oracle's ability to land marquee AI clients, creating sticky revenue streams in a winner-take-all market.
Capital allocation reality check: The $25+ billion capex projection for fiscal 2026 represents serious skin in the game—management is betting big on sustained AI infrastructure demand.
Market Pulse:
"I've never seen anything remotely like this," Ellison said about current demand levels—words that should resonate with investors who remember similar sentiments during previous tech boom cycles.
Bull’s Take:
Oracle has positioned itself as the infrastructure backbone for the AI revolution, with demand patterns suggesting this isn't another speculative bubble but a fundamental shift in computing needs. Smart money follows the capex.
Headlines
Databricks says annualized revenue will reach $3.7 billion by next month (link)
Meta Debuts AI Model V-JEPA 2 to Enhance Robotic Intelligence (link)
Micron Stock Up On New Memory Chip For AI Data Centers (link)
Saudi Arabia Taps AMD, Cisco For Cloud Project (link)
Chime prices IPO at $27 per share, valuing fintech company at $11.6 billion ahead of Nasdaq debut (link)
GameStop Files $1.75B Offering as Bitcoin Strategy Continues (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to GamblingMemez
All content provided by Investor Lookout and Bull Street is for informational and educational purposes only and should not be taken as trading or investment recommendations.
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