Should i buy microsoft and sell oracle
Both are very much the same thing
OpenAI exposure, investing in AI infrastructure and have sticky business with high RPO valued for over 600billion for each
But Microsoft have no debt (positive free cash flow), own 27% of openAI (bought it for almost nothing vs what it is valued now), have high margin and smart Ceo, they are vertically integrated ( make chip Maia, AI infra, own LLM, dominate software and own Windows, quantum, gaming and partnered with nvidea for Agentic windows.
I feel like oracle free cash flow will be restrained for many years especially if they have to renew their GPU, CPU every year to gain efficiency also they dont have their own Asic, cpu, gpu). They announced 40b debt +dilution fy2027. Total debt next years should climb to +170b and positive free cash flow will be visible in 2029 and they will start to pay the debt (maybe)
I also wonder what will happen when Larry is dead, he's really a charismatic leader. What his son will do with the stock, will he diversify?