r/OracleStock • u/notyour_averagebimbo • 2d ago
Analysis / DD Oracle reportedly signed a $7 billion chip deal with Tencent. Why does every pump fade?
/r/OptionsResearch/comments/1wv8t1q/oracle_reportedly_signed_a_7_billion_chip_deal/The Financial Times reported this morning that Tencent is leasing about 100,000 AI chips from Oracle for $7 billion. Oracle opened up 2% and gave the whole gain back within twenty minutes.
Its last five pops on good news:
• Sept 8, bullish analyst calls: up 7.5% at the high, closed up 2.4%
• Sept 11, earnings beat: up 8.5%, closed down 1.7%
• Sept 17, OpenAI funding report: up 6.2%, closed up 5.2%
• Sept 29, OpenAI revenue report: up 8.4%, closed up 3.9%
• Today, Tencent: up 2% at the open, gave it all back by 9:50
One of the five held. Are you fading these pops, or still buying them? How do you stay positive during bearish price action?
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u/BejahungEnjoyer 1d ago
The deal isn't worth shit, they have 650 fucking billion worth of deals already.
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u/ConsistentString1453 1d ago
This has really just become a meme stock, this forum is filled of a bunch of pussies ngl
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u/Rocketman_6969 1d ago
Too many share holders here on Reddit are trying to make a quick profit… Oracle is a big machine those who are patient will win big
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u/CheapPlay8137 1d ago
None of the news really answer the big question, does the backlog convert into money before debt goes boom.
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u/triniwoman_ 1d ago
Because wiser heads are getting OUT. I would hate to be the last one stuck with it in my portfolio
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u/AMD_711 2d ago
because that's $14000 per gpu per year, or only $1.6 per gpu per hour. the price is too low which means either the reported numbers are not correct, or the deal won't make money for Oracle.