Yesterday felt like an indifferent day except for a few standout names, like Palantir Technologies (PLTR), CoreWeave (CRWV), and Nvidia (NVDA), which got early nibbles that attracted a crowd, which in turn became an even larger crowd. That’s the way these stocks work. You sell them into strength and then buy the dip at some point.

It all traces back to the Artificial Intelligence (AI) story, which is just getting started. Even great stocks can be overbought, but they aren’t going to stay down for an extended period. 

Meanwhile, a spectacular show is unfolding in small, tech-focused (XLK) names that is something to behold.

Christmas in Whoville

 

Small names ($2 to $12 billion) that most people have never heard of are making monumental moves on an enormous scale. It's like Christmas in Whoville, and the Grinch is nowhere to be found.

The Most Monumental Move

Speaking of monumental moves, check out Oracle (ORCL), up 27% after posting financial data and a business update.

“We signed four multi-billion-dollar contracts with three different customers in Q1, resulting in RPO contract backlog increasing 359% to $455 billion.”  - CEO Safra Catz.

“Multi-cloud database revenue from Amazon, Google, and Microsoft grew at 1,529% in the period. We expect MultiCloud revenue to grow substantially every quarter for several years as we deliver another 37 datacenters to our three Hyperscale partners, for a total of 71” - Oracle Chairman and Chief Technology Officer Larry Ellison

The Real OG

I have been following Larry Ellison’s career from day one, including his obsession with beating Bill Gates and his reign as the wealthiest person on the list.

He is almost there!

The AI Story keeps raging on.

Today’s Session

It still shows that Oracle (ORCL) shares have continued to climb since the initial reaction to earnings and guidance.

Overall, there has been a string of strong AI news headlines pushing back on the never-ending Wall Street narrative that AI is dead.

Another Wall Street narrative is the tidal wave of inflation that’s coming sooner or later (like snow in the Northeast).

Producer prices index on a monthly basis were -0.1% compared to consensus of +0.3%.

Consumer prices excluding food, energy and trade service were +2.8% on a yearly basis, compared to consensus of +3.5%.

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