Simon Belanger

the longer you span it out the higher the uncertainty gets so they are one of the biggest cash burning companies on the planet right now they might be the biggest cash burning company so over the last 12 months they have negative free cash flow of around 24 billion and the guidance next year doesn't make the situation any better they expect 2027 free cash flow to be 40 billion in the hole

And they are issuing $20 billion in equity.

And they already added over $40 billion in debt to the balance sheet last year.

Capital expenditures will come in at $70 billion in 2027.

They were just shy of $50 billion, I think, last year.

Margins have pretty consistently declined.

And what I would imagine from this is it's just a shift from the company.

So this is a company that now has to add more.

you know, depreciation heavy data centers, whatever it may be to the mix, which will probably hit margins because, you know, Oracle used to be, they were like a data management software company, I believe.

Anyway, I'm not exactly sure what they did, but they.

Yeah.

So you're looking at a high margin software company transitioning to this big asset heavy business like this.

So margins are going to take a hit.

Will they recover down the line?

It's probably difficult to say, probably never to the scale they were before.

But revenue guidance is for 34% growth, earnings 18%.

I believe this was next year.

And they do mention...

that through 2030, they should be able to see 31% compound annual growth rates on revenue and 28% on earnings.

So really, growth is not the question.