Today is Tuesday, September 12, 2023.
The Early Bird Index today is 57.30.
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Oracle's AI Outlook: "Maybe!"
Oracle (NYSE: ORCL) dropped 9.23% in after-hours trading on Monday due to mixed financial results, as new comments from chairman Larry Ellison raise some eyebrows.
Financials: Oracle reported earnings of $1.19 per share in the past quarter, which was better than expected. But revenue came in at $12.45 billion and missed expectations.
Details: Cloud infrastructure revenue grew 66% in the quarter. The company’s cloud services unit plus its license support business now accounts for 77% of Oracle’s total revenue.
Yes, But: Cloud growth is slowing at Oracle. The company’s hardware and services revenue was also below estimates.
Quote: "Is Generative AI the most important new computer technology ever? Maybe! As of today, AI development companies have signed contracts to purchase more than $4 billion of capacity in Oracle's Gen2 Cloud.” - Oracle Chairman and CTO Larry Ellison.
Stock Price: Oracle is up 51% this year, including a 9% bump in the last 30 days.
Final Thoughts: Investors were not fooled by Oracle’s decision to tout its AI business while its cloud business suffered. The company is still lagging behind other cloud competitors.
Notable Earnings Today: Cognyte Software (Nasdaq: CGNT), InnovAge Holding (Nasdaq: INNV), Edgio (Nasdaq: EGIO), Farmer Brothers (Nasdaq: FARM), Mama’s Creations Nasdaq: (MAMA), Evolution Petroleum (NYSE American: EPM).
Notable IPOs Today: Global Net Lease, Inc. (NYSE: GNL), TKO Group Holdings, Inc. (NYSE: TKO), Nature Wood Group Limited American Depositary Shares (Nasdaq: NWGL), KraneShares Trust (NYSE Arca: KSEA).
Notable Equity Crowdfunding Campaigns Ending Today: VOLTEQ Equipment (Netcapital), Revolute Robotics (StartEngine).
Notable Economic Events Today: OPEC Monthly Report (7:00 a.m. ET), WASDE Report (12:00 p.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).
Novavax Updates Covid Vaccine
Biotech company Novavax (Nasdaq: NVAX) announced Monday that its updated COVID-19 vaccine arrived in the U.S. and is ready for distribution, sending shares higher by 3.52% in after-hours trading.
Details: Novavax’s updated XBB version of its COVID-19 vaccine is currently under review by the FDA. The company is also working with other global regulatory authorities for authorization and distribution in other countries.
Stock Price: Novavax is down 20% this year, but up 7% in the last 30 days.
Final Thoughts: While COVID-19 vaccines are no longer considered to be market drivers like they were three years ago, this is still good news for Novavax and its investors.
Arbitrum Plunges as Crypto Market Shrinks
Monday was a bad day for cryptocurrency prices due to rumors of the former crypto platform FTX liquidating $3.4 billion in digital currency. The crypto Arbitrum saw a more dramatic decline of 10% on Monday.
Final Thoughts: Part of the reason Arbitrum’s decline was worse was because of recent reports that the technology’s fraud proofs haven’t been used in the two years since it launched.
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Trends to Watch
Reward and Risk: The 11% Yield That Isn’t in Your Mutual Fund (Wall Street Journal)
Switch: Blue Apron to Transfer Shares to Nasdaq (MarketWatch)
Bearish: Crypto outflows on the rise as investors bet against Bitcoin (CryptoSlate)
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