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Tag: LSEG

  • Oracle forecasts miss Wall Street targets while spending rises, shares slide 10%

    By Juby Babu and Stephen Nellis

    Dec 10 (Reuters) – Oracle forecast sales and profit that missed analyst estimates on Wednesday, while saying that spending would rise by $15 billion compared with earlier estimates – a sign that big capital outlays to chase AI cloud-computing customers is not turning ​into profit as fast as Wall Street had expected.

    Shares of the Austin, Texas-based company slumped 10% in extended trading.

    Oracle has leapt to renewed prominence ‌with grand plans to build AI cloud data centers, and its results are viewed as a sign of whether there is an AI bubble and how it will raise money to build that ‌infrastructure.

    Oracle said that adjusted profit for the current fiscal third quarter would be $1.64 to $1.68 per share, below analyst estimates of $1.72 per share, according to LSEG data. Oracle’s third-quarter revenue growth forecast of between 16% and 18% also missed analyst estimates of 19.4% growth to $16.87 billion, according to LSEG data, and Oracle’s entire forecast range of cloud sales growth also missed LSEG estimates of $8.87 billion.

    At the same time, Oracle executives said that capital expenditures for fiscal 2026 are now expected to be $15 billion higher than the $35 billion ⁠figure the company estimated in September during its first-quarter ‌earnings call.

    “The ramp in capex and unclear debt needs are causing uncertainty among investors,” said Melissa Otto, head of research at S&P Global’s Visible Alpha.

    For the just-ended fiscal second quarter, Oracle reported total revenue of $16.06 billion, compared with analysts’ average estimate of $16.21 billion, ‍according to data compiled by LSEG. Adjusted operating income of $6.7 billion also missed Wall Street’s average target of $6.8 billion, according to LSEG data.

    “Although Oracle’s shares are buoyed by its September surge, this revenue miss will likely exacerbate concerns among already cautious investors about its OpenAI deal and its aggressive AI spending,” eMarketer analyst Jacob Bourne said in a statement.

    Oracle’s closely watched ​metric for future cloud contracts also missed Wall Street estimates.

    Oracle also reported $523 billion in future contracts, up 14.94% from the $455 billion it reported in September, when ‌it revealed a slew of cloud-computing deals with ChatGPT creator OpenAI and others that sent its shares skyrocketing. But the $523 billion figure fell below analyst estimates of $526 billion, according to Visible Alpha data.

    On a conference call with analysts, Chief Executive Officer Clay Magouyrk fielded questions on how Oracle would finance building the data centers needed for its cloud contracts.

    “We have some other interesting models that we’ve been working on,” he said. “One of them is that customers can actually bring their own chips, and in those models, Oracle obviously doesn’t have to incur any capital expenditures upfront for that model.”

    He added: “Similarly, we have different models that we’re working on with ⁠different vendors, where some vendors are actually very interested in a model where they rent ​their capacity rather than selling that capacity.”

    Oracle posted fiscal second-quarter adjusted profit of $2.26 per share, above ​analyst estimates of $1.64, according to LSEG data. However, Oracle said both adjusted and unadjusted profits were higher on a one-time $2.7 billion pretax gain on selling its stake in chip designer Ampere Computing.

    Larry Ellison, Oracle chairman, said the firm chose to sell its shares in ‍Ampere because it plans to have a ⁠policy of neutrality about which chips it uses in its data centers and that “we no longer think it is strategic for us to continue designing, manufacturing and using our own chips in our cloud datacenters.”

    Ellison said that Oracle would continue to buy Nvidia‘s latest chips, but that “we need to ⁠be prepared and able to deploy whatever chips our customers want to buy.”

    Oracle is building massive data centers for OpenAI, which Reuters has reported is working with Broadcom to develop its own custom ‌AI chip.

    Shares of Nvidia and Broadcom were both down less than 1% after Oracle’s results.

    (Reporting by Juby Babu in Mexico City and ‌Stephen Nellis in San Francisco; Editing by Maju Samuel, Peter Henderson and Matthew Lewis)

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  • Nayara Energy imports oil using dark fleet amid EU sanctions

    Nayara Energy, a company in India’s refining sector, has turned to a ‘dark fleet’ to continue its oil imports and fuel transportation in the wake of EU sanctions, as stated by Reuters, citing shipping reports and LSEG data.

    The company, which holds approximately an 8% share of India’s refining capacity of 5.2 million barrels per day (mbbl/d), has faced challenges since the sanctions were imposed last month, leading to a reduction in its crude processing activities.

    Nayara Energy operates a 400,000 barrels per day (bpd) refinery in Gujarat, India. It has reportedly imported at least seven cargoes of Russian Urals crude this month, despite the vessels being subject to EU sanctions.

    The ships, including Centurion, Mars 6, Pushpa, Horae and Devika, each carried around 700,000 barrels of oil, according to shipping reports and LSEG data.

    Before the sanctions, Nayara, with more than 6,600 fuel stations, sold around 70% of its refined products domestically and exported the remainder.

    However, the EU sanctions have led to a cutback in operations, with the refinery now running at 70–80% capacity.

    Nayara, which is majority-owned by Russian companies such as Rosneft, is looking for assistance from the Indian Government to secure shipping options and sustain stable refinery operations.

    Shipping sources indicate that Indian shipping lines are reluctant to transport Nayara’s oil and refined products due to the sanctions.

    An official from a company that previously shipped Nayara’s products mentioned the inability to obtain insurance cover for its vessels under these circumstances.

    Nevertheless, Russian entities are reportedly aiding Nayara in arranging ships for its operations.

    LSEG trade flows data reveals that Nayara has utilised vessels such as the Next, Tempest Dream, Leruo, Nova, Varg, Sard and Uriel, all under EU sanctions, to transport refined fuels like gasoline and gasoil.

    After facing sanctions some of these vessels were renamed.

    Despite these logistical hurdles, Evgeniy Griva, Russia’s Deputy Trade Representative to India, stated that Nayara is receiving oil supplies from Rosneft without issues.

    “Nayara Energy imports oil using dark fleet amid EU sanctions” was originally created and published by Offshore Technology, a GlobalData owned brand.

     


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  • London Stock Exchange Fires Wannabe Zimmerman For Harassing & Threatening Florida Teen For ‘Walking While Black’ In His Own Neighborhood

    London Stock Exchange Fires Wannabe Zimmerman For Harassing & Threatening Florida Teen For ‘Walking While Black’ In His Own Neighborhood

    Another example of racial profiling has surfaced, leaving many of us once again asking: when will this stop? A Florida teen, who was simply out for a walk in his own neighborhood, was targeted by a group of non-Black men who followed him, harassed him, and questioned his right to be there. 

    Source: EyeEm Mobile GmbH / Getty

    What should have been a peaceful stroll to make a phone call turned into a 10-minute nightmare of relentless suspicion and intimidation.

    Sound familiar? #RestInPeaceTrayvonMartin and the list of all other names whom police harass. 

    Thankfully, the victim is still alive. 

    A Walk Turns Into Racial Profiling

    The disturbing footage, captured by the teen and posted by his mother on TikTok, shows several men trailing the young Black male through a gated Sarasota community. 

    Despite his clear statements that he lived in the neighborhood, the men refused to believe him, hurling accusations and insults. 

    One even called him a “loser.”

    As reported by Yahoo Finance, the teen’s mother explained that her son had been walking to find better cell reception after Hurricane Milton knocked out power in their home. What he encountered instead was a group of men who saw his presence as a threat based solely on the color of his skin.

    The situation escalated when one of the men angrily reached into a vehicle, attempting to retrieve a gun. 

    Fortunately, another neighbor held him back before the confrontation could become even more dangerous. According to NewsOne, the parallels to the murder of Ahmaud Arbery are haunting—Arbery was chased and killed in 2020 while jogging through his own Georgia neighborhood, also targeted for simply existing while Black. 

    Though this young man’s story didn’t end in violence, the fear and trauma he endured are undeniable.

    Viral Video Sparks Accountability

    US-CRIME-COURT-RACISM-PROTEST

    Source: STAN HONDA / Getty

    As is too often the case, it took a viral video and public outrage to spur any kind of accountability. The footage has amassed more than 5 million views on TikTok, with users flooding social media to demand justice. 

    One of the men in the video, identified as Stephen Carega, worked for the London Stock Exchange Group (LSEG). As the pressure mounted, LSEG launched an internal investigation, leading to Carega’s suspension and subsequent firing.

    In a statement shared by Yahoo Finance, an LSEG spokesperson confirmed details.

    “The individual involved was initially suspended while we investigated the matter. The investigation has now concluded, and the individual’s employment has been terminated.” 

    The company also reiterated its zero-tolerance policy against racism and harassment, but the damage has been done. 

    No corporate statement can erase the fact that, in 2024, Black people still have to fear for their safety while doing the most basic of things—walking through their own neighborhoods.

     

    Racial Profiling Remains a Constant Threat

    As the video continues to circulate online, the story has become another grim reminder that racial profiling is still very much alive in America. It’s exhausting to watch these same stories play out time and time again, where the burden of proof is placed on Black people just to justify their presence.

    The teen’s mother, in her TikTok post, expressed both relief that her son made it home safely and frustration over the ordeal. 

    “I do not want to live in a community that does not welcome me and my children because [of] the color of our skin.”

    Social media sleuths claim to have identified the other members of the wannabe lynch mob, and hopefully, this will lead to more consequences than just losing a job.

    This incident, like many others before it, forces us to confront the reality that the US still suffers with race matters. Though Carega was quickly removed, it’s clear that more needs to be done to stop these incidents from happening in the first place.

    Lauryn Bass

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  • Qualcomm profit forecast beats estimates amid AI push, stock slips

    Qualcomm profit forecast beats estimates amid AI push, stock slips


    By Stephen Nellis and Max A. Cherney

    (Reuters) – Qualcomm on Wednesday forecast fiscal second-quarter profit slightly above Wall Street estimates and sales in line with market expectations, as a new line of AI-enabled chips helps power it out of last year’s smartphone slump.

    The sales outlook reflects a ramp-up in purchases of new Qualcomm chips with features designed to help run chatbots, image generators and other artificial-intelligence features directly on a device instead of in cloud computing data centers.

    Qualcomm shares initially rose sharply in after-hours trade but then reversed course to trade down 2%.

    Qualcomm predicted sales and adjusted profit with a midpoint of $9.30 billion and $2.30 per share for the current fiscal second quarter ending in March. The outlook compares with analyst estimates of $9.30 billion and $2.25 per share, according to data from LSEG.

    In addition to the results, the company said on Wednesday it has reached a chip supply deal with Samsung to supply chips globally for its top-end Galaxy S24 model.

    In its patent business, Qualcomm said Apple extended a licensing deal through March 2027. Qualcomm said in September it had signed a deal to supply Apple with chips through 2026 but noted that part of a patent deal made with the iPhone maker in the wake of a major antitrust battle was set to expire next year.

    For Qualcomm, “5% revenue growth and 24% earnings growth is very constructive in a skeptical earnings season environment,” said Thomas J. Hayes of Great Hill Capital.

    Qualcomm is the biggest supplier of chips to a smartphone market that had its worst sales year in a decade in 2023. As the smartphone industry slowly recovers, Qualcomm is facing competition on multiple fronts, with Huawei and Samsung Electronics both selling phones powered by in-house chips and Taiwan’s MediaTek challenging Qualcomm’s stronghold in mid- and premium-tier Android phones.

    San Diego, California-based Qualcomm is also expanding into other markets such as personal computers, with partners such as Dell Technologies and Lenovo Group expected to debut laptops with chips that Qualcomm claims are faster than Apple’s in-house processors.

    For the fiscal first quarter ended on Dec. 24, Qualcomm reported sales and adjusted profit of $9.94 billion and $2.75 per share, above estimates of $9.52 billion and $2.37 per share, according to LSEG data.

    In Qualcomm’s chip segment, the company forecast fiscal second-quarter sales with a midpoint of $7.9 billion, above analyst estimates of $7.86 billion. Qualcomm predicted second- quarter sales with a midpoint of $1.3 billion in its patent-licensing business, in line with estimates of $1.3 billion.

    For the just-ended fiscal first quarter, Qualcomm said chip and licensing revenues were $8.42 billion and $1.46 billion, respectively, above/below analyst estimates of $7.99 billion and $1.41 billion, according to LSEG data.

    Within its chip business, Qualcomm said that mobile handsets generated $6.69 billion in sales in the first quarter, above estimates of $6.37 billion, according to data from Visible Alpha. Automotive and Internet-of-Things chip revenues in the first quarter were $598 million and $1.14 billion, respectively, compared with analyst estimates of $518.3 million and $1.22 billion.

    (Reporting by Stephen Nellis and Max A. Cherney in San Francisco; Additional reporting by Arsheeya Singh Bajwa in Bengaluru; Editing by Sayantani Ghosh and Matthew Lewis)



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