Jim Cramer Says He Thinks “The Oracle Case is Instructive”

Oracle Corporation (NYSE:ORCL) is one of the stocks Jim Cramer put under the spotlight. Cramer highlighted the company borrowing money to build data centers, as he remarked:

“Now, co-founder, chairman, and CTO, Larry Ellison, who is brilliant and tough, is back in the driver’s seat. He’s going full tilt. He’s pushing all of his chips, putting, everything’s going to be on AI here… and Wall Street clearly feels a lot worse about that idea than it did just a couple of months ago.

Of course, by the time we got, we get here, we’d already started seeing other cracks in the AI data center story. But the bottom line here, I think the Oracle case is instructive. They’re borrowing a fortune to build data centers for OpenAI, which has about $1.4 trillion in spending commitments that it may or may not be able to afford. That’s why I call it the Achilles heel of this whole thing. No wonder people are worried.”

Photo by Artem Podrez on Pexels

Oracle Corporation (NYSE:ORCL) provides enterprise technology solutions, including cloud software, databases, infrastructure, hardware, and development tools, alongside consulting and support services. The company’s solutions cover business applications, AI, IoT, machine learning, and blockchain.

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Disclosure: None. This article is originally published at Insider Monkey.