Oracle's AI Demand Falls Short

Plus, Lucid makes sudden CFO change.

Today is Tuesday, December 12, 2023.

The Early Bird Index today is 62.00.

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Oracle's AI Demand Falls Short

Technology company Oracle (NYSE: ORCL) posted mixed financial earnings results on Monday, sending shares down by 8.80% in after-hours trading.

Financials: Oracle reported earnings of $1.34 per share in the past quarter, which was better than expected. But revenue only reached $12.9 billion, which was below estimates.

Details: Oracle CEO Safra Catz said that demand for cloud infrastructure and generative AI services “is increasing at an astronomical rate.” Oracle Chairman Larry Ellison also said that “demand is over the moon.”

Yes, But: The demand is not strong enough. Revenue only increased by 5% in the quarter, lagging behind other tech providers who are benefiting from AI hype in 2023.

Also: The company is also struggling to integrate healthcare firm Cerner, which Oracle acquired in 2022.

Stock Price: Oracle was only up 8% this year before Monday’s earnings, lagging behind other big tech names in 2023.

Final Thoughts: The stock valuation is good, but there are still many questions, especially since Oracle is playing catch-up with AI.

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Notable Earnings Today: Johnson Controls International (NYSE: JCI), Mama’s Creations (Nasdaq: MAMA), Loop Media (NYSE American: LPTV), Emcore (Nasdaq: EMKR), Champions Oncology (Nasdaq: CSBR).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Plei (Republic).

Notable Economic Events Today: Consumer Price Index / Core CPI (8:30 a.m. ET), EIA Short-Term Energy Outlook (12:00 p.m. ET), Federal Budget Balance (2:00 p.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

Lucid Makes Sudden CFO Change

The electric vehicle company Lucid (Nasdaq: LCID) dropped by 3.26% in after-hours trading on Monday after announcing that Chief Financial Officer Sherry House is resigning from the company immediately.

Details: House is leaving the company to pursue other opportunities. Gagan Dhingra, Lucid's current vice president of accounting and principal accounting officer, will additionally serve as interim CFO while the search for a permanent CFO begins. 

Background: It has been a bad year for Lucid. Demand for EVs has dropped, resulting in missed financial results for Lucid. The company also lowered its guidance.

Stock Price: Lucid is down 25% this year, but up 16% in the last 30 days.

Final Thoughts: Bullish investors are hoping for a Lucid comeback in 2024, but that’s wishful thinking.

Immutable X’s December Surge

The latest cryptocurrency to surge in December is Immutable X, which is the digital currency of the gaming platform Immutable. Immutable X jumped 14% on Monday.

Background: Analysts from VanEck recently said that they are bullish on Immutable X because of the quality of the games on the platform.

Final Thoughts: Will this Immutable X rally continue? Likely not, but that's the nature of crypto.

More Than Just Liquidations: Why is Ethereum (ETH) price down today? (Cointelegraph)

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