Rachel Warren

Now, these job cuts are expected to free anywhere between $8 billion to $10 billion in annual cash flow.

So, that's very much a calculated move, I think, to perhaps satisfy Wall Street's mounting anxiety over their debt load, so to speak.

I think it's also an interesting question.

I mean, is Oracle fundamentally trying to change its business model from a high-margin software provider to a capital-intensive AI landlord?

That's sort of what we're seeing.

We saw Oracle's stock jump immediately following the layoff news, but as you noted, Travis, shares are still down significantly from recent highs.

I think what we're seeing as well is they're essentially betting the house that AI cogeneration is going to allow the company to build more software with fewer people and justify that human cost as a necessary step

to fund their 300 billion partnership with OpenAI and other partners.

They've proved they can cut costs, but now they have to prove that they can convert that AI backlog into actual profit before that debt service becomes unmanageable.

Yeah, it's an important discussion.

I mean, it really first understand why AI might be a tailwind for the likes of Expedia and Instacart.

It is important to understand what that demand aggregator model looks like.

And essentially, these businesses win by sitting in the middle of this massive three-sided seesaw, if you will, right?

They pull in a huge audience of consumers.

That forces a fragmented group of suppliers, whether it be thousands of individual hotels, in the case of Expedia, or local grocery stores, in the case of Instacart,

it forces this group of suppliers to come to these aggregators to find customers.

The moat isn't the products they sell, it's that data, it's the convenience of having everything in one searchable place.

The fear that we've been hearing is that AI is going to fully disrupt this type of model, meaning maybe you would just ask a chatbot to book a flight, you'd skip the Expedia app entirely.

But I think there's actually a meaningful bull case here to explore, and that's that AI actually makes the aggregator's data much deeper.

You think about platforms like Expedia, they've got decades of high-intent search data that a general AI like ChatGPT doesn't have.