Trump’s Tariffs Are Back — And Crazier Than Ever

Trump’s Tariffs Are Back — And Crazier Than Ever – Prof G Markets

Market views

Bearish

ORCL— Oracle faces severe financial distress with stock down 35% YTD, credit rating downgraded to near-junk (BBB minus), negative free cash flow of $24B while taking on $43B in debt, and now facing a $7B collateral bill for Wisconsin data center due to poor creditworthiness. The company is described as being in the 'danger zone' with high default risk.
PARA— Paramount stock down 25% on antitrust lawsuit blocking Warner Brothers merger. The stock has been 'inflated by greed, by ego' and without the merger will 'plummet' as investors rotate out, potentially becoming 'a dead man walking or a private equity ticket.'
AIINFRA— The AI buildout is increasingly reliant on debt rather than equity, with $489B of AI-related debt issued this year creating systemic risk. Oracle's distress is described as just the most obvious case, with 'a lot more risk lingering beneath the surface.'

Not investment advice.