Oracle shares drop as OpenAI delays data center plans, pushing timeline to 2028.
Delay in Data Center Completion: Oracle's data centers for its $300 billion OpenAI contract will now finish in 2028 instead of 2027 due to labor shortages and material limits, causing a significant drop in its stock price.
Investor Concerns: The delay and a recent earnings report that fell short of expectations have raised concerns among investors about Oracle's aggressive AI spending and its ability to generate revenue from its investments.
Financial Performance: Despite a 34% increase in cloud revenue and a 68% rise in infrastructure business, Oracle's cash burn increased, leading to negative free cash flow of $10 billion and a total debt of around $106 billion.
Market Reaction: The delays and rising costs have added pressure on Oracle and OpenAI, as investors are wary of the risks associated with Oracle's ambitious AI infrastructure projects amidst ongoing scrutiny over its debt-fueled expansion.
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Technical Analysis for AI
Technical Sentiment Analysis for Sleepless AI (AI) As of , Sleepless AI (AI) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 1 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for AI stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, AI is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Sleepless AI (AI) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 0.00938 | 0.0149 | 0.0201 | 0.0256 | 0.0308 | 0.0363 | 0.0415 |
| Fibonacci | 0.0149 | 0.019 | 0.0215 | 0.0256 | 0.0297 | 0.0322 | 0.0363 |
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