Jim Cramer Shed Light on These 22 Stocks

3. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 122

Oracle Corporation (NYSE:ORCL) is one of the stocks Jim Cramer shed light on. Cramer discussed the company’s deal with OpenAI, as he commented:

“Wall Street Journal is questioning Oracle for relying on a squishy number, a $300 billion five-year agreement with again OpenAI. Oracle didn’t formally announce the contract, but it put it in what’s known as the remaining performance obligation line, which for many means it’s basically a done deal. Some of us regard that as almost cash in the bank. Boy, do we look silly.

Well, at the time of the announcement, the market assumed that the contract was worth its weight in gold, so Oracle stock jumped 36% in a single day back in September… But Oracle stock has gotten crushed as we found out more about that OpenAI relationship and how fraught it is becoming. These days, investors are feeling pretty darn dubious about it, which is why Oracle stock got shelled again, falling more than 5% to $178 and change. That’s down from $345 at its all-time high just a few months ago.

The stock has now wiped out most of the value it gained when Oracle decided to become king of the data center builders. Will it give up the rest? Yes, if it doesn’t stop the spending and gets disciplined. Oracle and OpenAI are killing the data center cohort for certain… Some call these kinds of deals circular transactions. Other call them vendor financing. To me, it seems like a Lazy Susan transaction of dot-com… And that’s why I’m saying the bubble popped a while ago, and now it’s deflating quickly. That’s good.”

Oracle Corporation (NYSE:ORCL) provides cloud and on-premise software, databases, and IT infrastructure to help businesses manage operations. The company also offers hardware, consulting, and support services.