'Bloom Is Off the Rose' for Oracle, Cleo's Kunst Says

Watch on YouTube ↗  |  June 10, 2026 at 21:08  |  4:30  |  Bloomberg Markets
Speakers
Sarah Kunst — Cleo Capital Founder

Summary

Sarah Kunst reacts to Oracle's Q4 results, arguing that the AI-driven excitement around the stock has faded. Oracle faces headwinds from OpenAI's competitive struggles and a distracted CEO. She highlights Alphabet as an overlooked AI conglomerate trading at a lower relative valuation, and dismisses SpaceX's AI pitch as hype.

  • Oracle Q4 infrastructure sales grew 93% but failed to meet inflated expectations, triggering selling.
  • Kunst says the AI bloom is off Oracle, with investors now demanding real results.
  • Oracle's close relationship with OpenAI becomes a liability as Anthropic and Alphabet gain ground.
  • CEO Larry Ellison's media distraction and the complexity of Oracle's businesses weigh on the name.
  • Alphabet is positioned as an undervalued, diversified play capturing AI, space, and EV themes.
  • SpaceX's AI pivot is seen as unconvincing and a potential bag-holding event for public market indexes.
  • Next-generation AI that requires less data center spending could further reduce Oracle's earnings tailwind.
Ideas
Sarah Kunst Cleo Capital Founder 0:20
Oracle's AI bloom is off the rose.
Oracle's stock benefited from AI enthusiasm but the bloom is off; Q4 revenue from infrastructure was strong but expectations were too high and the stock sold off. The company's close ties to OpenAI are now a headwind because OpenAI is besieged by competitors like Anthropic and Alphabet, reducing Oracle's AI luster. Oracle also has too many businesses and a CEO distracted by a media side venture. Next-generation AI that burns less money on data centers will further reduce Oracle's opportunity.
ORCL HIGH
Sarah Kunst Cleo Capital Founder 2:28
Alphabet is an undervalued AI conglomerate.
Alphabet is still overlooked and combines what investors want from Oracle, OpenAI, Anthropic, SpaceX and Tesla all under one roof, at a much lower relative valuation.
GOOGL HIGH
Up Next
38:21
OpenAI Joins Massive AI IPO, Super Micro To Buy AI Equipment | Bloomberg Deals 6/10/2026
Bloomberg Markets · Jun 10
55:15
Did Trillion-Dollar IPOs Break The Social Contract?
1000x Podcast · Jun 10
10:08
Oracle Earnings Report | Closing Bell
Bloomberg Markets · Jun 10
3:20
RBC's Helima Croft: Still losing significant volumes of oil every single day
CNBC · Jun 10
4:52
OpenAI chairman Bret Taylor: Heartened everyone is taking AI regulation seriously
CNBC · Jun 10

This Bloomberg Markets video, published June 10, 2026, features Sarah Kunst discussing ORCL, GOOGL. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Sarah Kunst  · Tickers: ORCL, GOOGL