Cramer's Morning Take: Oracle 12/12/23

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Jim Cramer (0:33)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

Now, let's talk about something that was hard to do, but we decided we had to bite the bullet because one of the things, one of my tenets from my first book is, your first loss is your best loss. We battled Oracle after a disappointing previous quarter, which they did not regard as disappointing, but the market did. And, you know, the idea was that they were going to improve on Cerner, $28 billion bid, they closed that two years ago today, that they were going to go for more revenue. Now, you and I go back and forth. It's clear, I think they're losing share and they're spending a fortune to build these data centers without any money coming in.

Jeff Marks (1:21)

And I think that's the reason why they aren't getting the shares because they just simply don't have enough of the supply, the capacity, the data centers to meet that demand and record those revenues. Of course, there's a fix in place. They're going to be investing aggressively, building out data centers. 100 plans, expanding 66 more to meet demand, but that's gonna take time to play out. And in the meantime, you are seeing cloud revenues not meeting expectations, up 24%, missing guidance of 28 Cloud infrastructure up 52%, a step down from 66% in the prior quarter. So, two disappointing quarters in a row in a penalty box here.

It's a cheap stock, but it can stay cheap for a while.

Jim Cramer (2:05)

And I think about things that we've done wrong this year. Thank you for the people who turned up at the Dallas signing from my wife's phosphoro Mezcal.

Several people made the point there, and also when I was at the Eagles game. Why do you hang on to stocks that you know you don't like, and then take up some of your time and your call on these? Well, I didn't, think if we had sold Footlocker, now we're coming back on Footlocker, but if we had sold it immediately, that would have been better. Boushe Health, that would have been better. I don't wanna find out that next quarter is still another quarter too far.

If we really like Oracle, we can come back and buy it. That's another tenant that I had, which is that if you think that it's so great, just go buy it back when you think it's better.

Jeff Marks (2:45)

Yeah, revisit in six months when they're putting more of that capacity online. Perhaps I'll be closer when we really start seeing a modernization of AI related revenues.

Jim Cramer (2:59)

Join the CNBC Investing Club with Jim Cramer to catch my member exclusive morning meetings every day at 10, 20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

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