Alpine Capital (Pty) Ltd on Oracle Corporation

Alpine initiated Oracle positions in certain portfolios during Q2 after the stock's pullback. The manager acknowledges that the market is discounting negative free cash flow and the possibility of a future capital raise, but believes the valuation and entry point create an attractive asymmetric opportunity. Oracle retains the ability to slow spending if the AI investment cycle reverses, limiting some of the downside associated with current capital intensity. Alpine does not expect AI demand to reverse and therefore sees the current weakness as an attractive entry point.