Weitz Large Cap Equity Fund on Oracle Corporation
Thesis
Oracle is held as one of the portfolio's major hyperscaler cloud and AI service providers. Its shares lagged during the second quarter while investors focused more closely on the economics of AI capital spending. The fund believes Oracle remains competitively well positioned and can earn reasonable returns on the capital being deployed.
“We continue to believe that all five companies are competitively well positioned and poised to earn reasonable returns on their voracious capital spending.”
Key risks
- Investors are increasingly scrutinizing whether heavy AI capital spending will generate acceptable returns.