Jim Cramer was hyping the sub-prime mortgage bubble to the end 18 years ago and now he is doing the same with the AI bubble. He will never learn, but then many people are just like him. Hopefully, he's put his money where his mouth is so he will suffer just like many others will https://t.co/0ToxM0JACs
— jeffrey lee funk (@jeffreyleefunk) August 6, 2026
The five-year credit default swap is above 200 basis points. That is higher than anything it printed in 2008.
Nothing in the business broke. Revenue grew 21% last quarter. Cloud infrastructure revenue grew 93%. The order backlog hit $638 billion, up 363% in a year.
Free cash flow was negative $23.7 billion for the fiscal year.
Oracle raised $43 billion in debt to cover the gap. It plans roughly $40 billion more. Total debt sits near $130 billion. S&P cut the rating to BBB- in July, one notch above junk. Moody’s has a negative outlook.
A CDS spread is not a forecast. It is the price of protection, and protection got expensive.
The equity market looks at that backlog and sees the future.
The credit market looks at the same backlog and sees the bill.
Who‘s right?
🚨 It costs more to insure Oracle's debt today than it did the week Lehman collapsed.
The five-year credit default swap is above 200 basis points. That is higher than anything it printed in 2008.
Nothing in the business broke. Revenue grew 21% last quarter. Cloud infrastructure… pic.twitter.com/vwwjzXgFNc
— Thierry from arvy 🇨🇭 (@ThierryBorgeat) August 5, 2026
AI Debt Stack Under Pressure pic.twitter.com/Og82hWQ57G
— Migo (@ReiteConMig0) August 6, 2026
The $36 Billion AI Money Loop pic.twitter.com/z1FK5NOeTD
— Migo (@ReiteConMig0) August 5, 2026
BREAKING: Michael Burry says he disclosed major portfolio changes:
• Exited Microsoft, $MSFT, longs and calls
• Closed Oracle, $ORCL, shorts and puts
• Closed January 2026 Palantir, $PLTR, puts, but remains short the stock
• Rolled Nvidia, $NVDA, puts into June 2027, with…— unusual_whales (@unusual_whales) August 4, 2026
OPENAI DRIVES MOST OF MICROSOFT'S AI REVENUE
Microsoft disclosed it generated $24.1 billion in AI revenue from OpenAI in the year ended June, suggesting the ChatGPT maker accounts for more than half—and possibly around 70%—of its AI business.
The figures highlight Microsoft's…
— *Walter Bloomberg (@DeItaone) August 5, 2026
Ken Griffin bought Situational Awareness and here's what he sees coming with AI
Ken Griffin is the CEO of Citadel:
• Last week, Citadel bought the bulk of Situational Awareness's forced liquidation after the AI fund collapsed 67% in July
• Citadel has returned… pic.twitter.com/DoHAsX2McG— Michael Burry Stock Tracker ♟ (@burrytracker) August 5, 2026