Oracle’s AI Push and Rising CapEx: Is the Sell-Off Overdone?

Bullish Gator

LikeFolio’s Landon Swan: web traffic down 11% while ORCL fell 50%; sell-off may be excessive but CapEx ramp and datacenter/AI risks warrant investor caution.

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What stands out

Landon Swan on Schwab Network points to a striking disconnect: Oracle’s web visits are down 11% year-over-year (YoY) while the stock has fallen about 50% over the same stretch. He makes the case the sell-off could be harsher than the company’s underlying results warrant, but he also warns Oracle is ramping capital expenditures (CapEx) to build out artificial intelligence (AI) datacenters, which can sap cash and patience. That tradeoff, healthy headline profitability versus a heavy, multi-quarter investment cycle, frames whether this is a buying opportunity or a wait-and-see moment.