""I do not like how it is positioned or the investments it is making. It did not need to do what it is doing, and I do not know why it is doing this. Maybe ego," Burry wrote in response to a reader who asked why he had decided to bet against Nvidia and not Oracle. He didn't disclose details about the put options."
"The view follows a volatile year for Oracle shares. The stock jumped 36% in a single session in September after the company issued a bullish forecast for its cloud business, signaling surging demand tied to artificial intelligence. Those gains quickly faded, however, as investors focused on rising capital expenditures, questions around the structure of some cloud deals and a swelling debt load linked to data-center expansion. Oracle finished the year about 40% below its September peak."
"Oracle is known for its database software but has recently pushed aggressively into cloud-computing services, requiring a costly build out of data center capacity, for which it is taking on significant debt. Oracle has about $95 billion of debt outstanding, making it the biggest corporate issuer outside the financial sector in the Bloomberg high-grade index. The company didn't immediately respond to a request for comment outside of regular business hours."
Michael Burry owns put options on Oracle and directly shorted the stock during the last six months. He previously held bearish bets against Nvidia and Palantir. Oracle expanded aggressively into cloud-computing services, requiring costly data-center buildouts funded by significant debt. Oracle has about $95 billion of outstanding debt, making it the largest corporate issuer outside the financial sector in the Bloomberg high-grade index. The stock surged 36% in one September session on a bullish cloud forecast tied to AI, then declined amid concerns over rising capital expenditures, deal structures and swelling debt, finishing the year about 40% below its September peak. Burry has avoided shorting larger technology companies whose businesses extend well beyond AI.
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