Oracle Reports Results… And Mortgage Rates Top 7% 9/10/26

SPEAKER_1 (0:00)

At Edward Jones, we believe rich isn't about having life all figured out. It's opening yourself to all the possibilities. That's why your dedicated financial advisor provides long-term planning built around you, meeting you where you are, and helping you get closer to where you want to be. So no matter where you're starting from, you can move forward with confidence. The key to being rich is knowing what counts.

Let's find your rich. Edward Jones, member SIPC.

SPEAKER_2 (0:30)

Are you as confident as you should be when it comes to growing your business? Is your strategy ready to execute today?

If cash flows aren't where they need to be, growth could be at risk, especially in the eyes of your investors, board members and the business press. But when your business is operating in top shape, you've earned the right to grow. EY Parthenon can help you reimagine your business and execute a game plan for long-term growth. EY Parthenon, solutions that work in practice, not just on paper.

Melissa Lee (1:01)

Live from the NASDAQ market site in the heart of New York City's Times Square, this is Fast Money. Here's what's on tap tonight. Oracle on the rise. Here's the tech giant jumping on his latest earnings report, but can the software company keep the gains coming this time? And what's the deeper read into the AI space? Plus a mortgage mess. Rates hitting more than one year highs. Homebuilders taking it on the chin. We dive into the housing trade, what it means for the consumer. And Apple jumps on strong reviews of its new foldable phone, the Fold. Copper miners sink on the threat of new tariffs. And can Starbucks shares get re-caffeinated? What the CEO had to say about the company's turnaround plans and whether it's time to buy the stock now. I'm Melissa Lee, coming to you live from Studio B at the NASDAQ. On the desk tonight, Tim Seymour, Karen Finerman, Dan Nathan and Guy Adami. We start off with tonight's big tech report, that would be Oracle, that's not jumping on better than expected results in cloud infrastructure revenues that more than doubled in the latest quarter. The call kicked off moments ago. Seymour Modi's got the details here. Seymour.

Seema Modi (1:56)

And Melissa, Oracle does say that customer demand for its AI cloud training services continues to grow faster than supply with more than $30 billion of new contracts in the first quarter. So the demand story is improving with its backlog, remaining performance obligations in the quarter climbing to $664 billion. It is up from $638 billion last quarter on financing. Oracle confirming no new plans to raise capital and that it has completed the previously announced $20 billion equity issuance program. So that is likely a sigh of relief for investors. We're still awaiting management to address how politics are at all impacting its data center pipeline. We are looking at shares right now up about 7% as investors refocus on the demand story.

And still, I would point out down solidly this year. More comments as we get them, especially as we await comments from Larry Ellison, the founder.

Melissa Lee (2:48)

All right, Seema, thank you. Keep us posted, Seema Modi.

And maybe the setup for the stock was perfect going into this report in that everybody was negative. I mean, nobody had a kind word to say about it.

Tim Seymour (2:59)

No, well, Steve Grassl last night did to his credit, but I'll say this, you know, the free cash flow, which has been a disaster, wasn't good at $5.4 billion negative, it was twice as good as the street was expecting, if that makes sense, because the street was looking for negative $10 billion. So maybe they're getting it in line there, margins were slightly better, but, you know, forget about Oracle for a second. What does this mean, the overall software trade? And I will continue to say, I think the software trade can go higher. Oracle, regardless of what it does, IGV, I think, especially on the back of this print, is going to continue to do the grind higher.

Karen Finerman (3:31)

So I think the one thing she said that was so important was no new plans to raise capital.

Guy Adami (3:36)

And they completed their offering.

Karen Finerman (3:38)

Right. I wonder how long that now is. And then I don't know what the CapEx will actually be. Last time, they were sort of, along with everybody else, surprising more and more to the upside.

And so we want to see what that is because the debt, we know, is a sort of integral part of the story in the CDS, which reflects higher concern about the debt. But at the moment, this is positive, and I agree that set up was good going in.