During a fever-induced nightmare last week, I dreamt of a freaky Labubu going all “Chucky”. It then occurred to me how similar those two look. In any case, that probably marked the Top in Labubus. The World does work in mysterious ways!
Listening to the Oracle results call last night, and I couldn’t help but compare Larry Ellison to Elon Musk, with Larry on a full-on promotional spiel like a televangelist.
Well, it worked because Oracle rallied >30% , making Larry the Richest Man in the World …. pushing Elon to second place.
As we highlighted earlier, the results weren’t anything special.
What was special was this one magic number: their "Remaining Performance Obligations (RPOs)" which jumped by +359% to $455bn!!!
FYI, RPOs are not guaranteed revenue and "represent the total value of contracted revenue that has not yet been recognized, often tied to future performance obligations".
We had to get out our “BS-O-Meter” because that was just too much to handle!
Add to the fact that the sell-side analyst questions were a boot-licking exercise, with questions around "ROI" subtly avoided (because who cares about ROI, right?) and also none figuring out where the $300bn new contracts came from in a quarter, when the answer is so obvious —→ It’s probably Stargate … the $500bn aspirational project between OpenAI / Oracle / Softbank, which was announced back in … January!
This is how Tops are formed. When obvious nonsense excites the monkeys to the degree that none questions it. Like Labubus.
My buddy
nailed it below. He probably had the same dream as me:
Good luck out there!
🌳🙏
Disclaimer:
This isn’t financial advice. This is the equivalent of Monty Python for finance but worse: This is the trading blog of a shrub.
Don’t be Stupid. Seriously. How many times do I have to repeat this …
It’s not over until someone YOLOs their entire savings into Labubus … waiting for that trigger!
What are these future performance obligations and how is Oracle likely to meet them ? I wonder where one can get that info.
Nothing wrong with words like Backed or Obligations, but it brings back bad memories.