Initial Cost ImpactOracle is expected to incur significant initial costs, including $115 billion in equipment capex, which could impact initial contribution margins.
Operating Margin PressureOperating margins are likely to be pressured, which has contributed to the stock’s recent weakness.
Supply Chain ChallengesIt is less clear how Oracle can stand up datacenters fast enough to achieve the topline growth given supply constraints across land, buildings, energy, and GPUs.