🐺 Oracle’s AI Cloud Costs Rattle Markets, Then Rebound

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Before we dive in, here’s what stood out today: $ORCL ( ▼ 6.69% ) margin fears rattled the open, but dip buyers showed up; risk appetite returned in high-beta tech; and $APP ( ▼ 1.68% ) reminded everyone how fast sentiment flips.

Oracle sold off this morning after a report from The Information said its AI cloud business (powered by leased NVIDIA ($NVDA) chips) generated roughly $900M in revenue but only $125M in gross profit, implying 14% margins versus the company’s typical 40%+. The concern: steep GPU leasing costs and aggressive discounting to win clients.

The market initially dropped on the headline, pulling down AI-linked names, but found its footing as follow-up reports clarified that The Information’s sources may have overstated the impact. Oracle recovered part of its losses by midday as traders reassessed the long-term profitability potential once utilization and pricing scale improve.

Despite the morning dip, high-beta tech and growth names bounced back, showing real resilience. Amazon and Netflix both traded higher, signaling that megacaps aren’t breaking down and that speculative appetite is alive beneath the surface.

A standout play here is VistaShares $WILD ( ▼ 9.5% ) ETF, which delivers 2x daily leverage across a basket of names like $MSTR, $NVDA, $COIN, $CRWV, and $PLTR all key drivers of this risk-on rebound. The ETF is up 58% over the past month, riding the same momentum wave that’s lifting these leaders. Readers can check out the full details in the prospectus.

AppLovin plunged 17% on Monday after reports surfaced of an SEC probe into its data-collection practices, tied to potential privacy and ad-targeting violations. But the stock ripped back today, recovering the entire loss and adding more… a full-on reversal that caught shorts leaning too hard.

The probe appears to be preliminary, and management hasn’t issued a formal statement yet, but for now the market is treating it as noise, not narrative.

Thanks for reading! Check out more content like this over on my X account.

Have a profitable rest of the week!

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