Avoiding Oracle Due to Revenue Concentration Risk

20 days ago

Joseph Carlson

"Then we have Oracle, which is a genuine hyperscaler cloud computing company. And there's a reason that I don't own Oracle. Keep in mind that Oracle's customer count is only 200,000 with about 80% of their revenue coming from OpenAI. That's promised revenue. It doesn't mean it will for sure happen. This dependency makes Oracle a higher risk compared to companies with a diversified customer base."

The speaker explains his decision to steer clear of Oracle, pointing out that its heavy reliance on OpenAI for 80% of its revenue introduces significant risk. In his view, the lack of customer diversification makes Oracle a less attractive and riskier investment relative to other hyperscalers.

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