Jim Cramer Says Worries About Oracle (ORCL) Losing Money Are Buying A Boeing Plane

We recently published Jim Cramer Discussed These 13 Stocks And Talked About Market “Froth” & Dotcom Bubble. Oracle Corporation (NYSE:ORCL) is one of the stocks Jim Cramer recently discussed.

Oracle Corporation (NYSE:ORCL) was the talk of the town last month after its shares shot up by a whopping 36% after it announced a $455 billion cloud order backlog. He discussed reports suggesting that the firm was losing money from using NVIDIA’s response and outlined NVIDIA CEO Jensen Huang’s take on the matter:

“[on reports of Oracle losing money from using NVIDIA’s chips and Jensen Huang’s response] Wonderfully profitable. I know, I have to believe that the Oracle people were thrilled that there is an actual explanation about how you buy these things and there is no immediate payoff. Look, when you’re building a hotel it’s true, there’s no payoff until about year five and I just feel like what he’s saying is, when you build these things, it’s, you’re not going to make money instantly. It would be great if you could. But The Information story could be right at the beginning, but at the beginning you’re trying to get a tradeoff like a Boeing plane. I would have used a Boeing plane as an analogy. Because when you first get a Boeing plane, holy cow, you’re losing money. It’s only in the later years that you start amortizing. Year four to year 23, the Boeing plane makes a huge amount of money. Maybe even year 30, because the planes are so good. But we don’t understand this new world yet. So you could have a scoop, that will look like not a foolish scoop, not a scoop at all, in a few years from now. But in the moment, it’s a gotcha. And the gotcha is basically, what is that organization saying? Well that organization is trying to break news as they have the whole way. That NVIDIA is overvalued. That if you’re short NVIDIA, you’d read that and you’d certainly would double down on your short. But you’d be doubling down at 20, at 50, at 80, at a 120 and then you’re done. You’re basically at the card table saying, I’m gonna get a ten and I’m gonna get a Jack and you run out money getting two fives, over and over again. And you split them.”

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Disclosure: None. This article is originally published at Insider Monkey.