Asymmetric Investing by Travis HoiumANALYSTJul 23, 2026“Oracle is in a downward spiral due to insufficient cash flow to fund data center buildouts, rising debt costs, declining return on invested capital, and inability to compete with better-capitalized hyperscalers.”
Why he says it — point by point
FAVORABLE & AGAINST · BOTH KEPTWhy
they don't have enough cash to build all those data centers right now. So they're going to have to issue debt and or equity
the cost of finance these projects is going up for Oracle. Stock price is declining, debt costs are going up.
return on invested capital has been declining ever since. Over the past 12 months, now just 9.6%
the equipment is getting more expensive. The labor is getting more expensive. Land is getting more expensive.
Those companies can keep financing projects in perpetuity. Oracle simply can't. They don't have the cash flow behind their business.
The structured call
The receipt
Publish-day price $$125.84 · the claim is anchored to the moment it was said.
