Oracle Faces Analyst Scrutiny Over Cloud Business Model

A surprising critique from Wall Street is challenging the narrative around Oracle’s cloud computing ambitions. Despite announcing several high-profile artificial intelligence partnerships, the technology veteran now faces tough questions about its fundamental business model and profit potential.

Research firm Redburn Atlantic has issued a stark warning to investors, assigning a “Sell” rating to Oracle shares. Their analysis presents a concerning picture: Oracle may be acting more as a financier for major cloud projects rather than operating as a traditional cloud provider. This approach could result in significantly thinner profit margins than the market currently anticipates.

The firm’s researchers express particular skepticism about Oracle’s ability to capitalize on billion-dollar AI initiatives. While partners like OpenAI stand to generate... Read more...