TL;DR

Oracle’s stock soared 30% on dubious AI-driven projections, reminiscent of past market crashes. While some celebrate windfall profits, many will likely be burned, highlighting the risks of investing in hype over substance.

Story

Oracle’s 30% stock surge? Sounds like 1999 all over again. John, a retiree, saw his nest egg inflate, only to remember the dot-com bust. This time, it’s AI’s turn. Oracle’s “astounding” $455 billion backlog sounds impressive, but how much is real, and how much is vaporware? ‣ Vaporware: Software promised but not delivered. Like a house of cards built on hype, it could crumble. They project $144 billion in cloud revenue in just four years, a claim so audacious it reeks of desperation. This isn’t just a stock jump; it’s a desperate attempt to stay relevant in the increasingly crowded AI market. Remember Enron? They, too, cooked the books with inflated projections until the truth imploded. History often repeats itself.

The human impact? Many will get burned. Small investors, seduced by the hype, will blindly follow only to see their savings evaporate. Larry Ellison’s net worth soared by $119 billion overnight—another sign of the obscene wealth disparity. What about the workers whose jobs rely on this bubble? They are the real victims.

The lessons are painful but clear: Be skeptical of sky-high projections. Read financial statements meticulously. Remember, there are no guaranteed returns. This is the same old scam, with a fresh AI coat of paint. This isn’t about innovation; it’s about manipulating public perception to fuel stock prices. Don’t be another statistic.

The conclusion? Oracle’s surge is a stark reminder that market manipulation never goes away, only the hype changes. This is a bubble. Whether it pops softly or explodes remains to be seen, but it’s time to brace for impact.

Advice

Never invest based solely on hype. Always question the numbers, and be wary of overly optimistic projections. Diversify, and never invest more than you can afford to lose.

Source

https://www.reddit.com/r/stocks/comments/1ndefzc/oracle_stock_booms_30_on_pace_for_best_day_since/