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Milton Ault
Founder & Executive Chairman

All right, everybody. Welcome to the conference call today. This is on Hyperscale Data in our robotics campus, Artificial Intelligence of the future of the Michigan data center and Montana sites. I apologize if anyone could hear us prior to the call. That was a technical snafu. But luckily, we didn’t say anything that we didn’t want everyone to hear anyways. So Gary, why don’t we read the forward-looking statements, and we’ll go from there.

Unknown Executive

Okay. Forward-looking statements. This presentation and other written or oral statements made from time to time.

Milton Ault
Founder & Executive Chairman

Gary, can you change the slide, please?

Unknown Executive

This presentation and other written or oral statements made from time to time by representatives of Hyperscale Data Inc., the company, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, Section 21E of the Securities Exchange Act of 1934 as amended. Forward-looking statements reflect the current view about future events. Statements that are not historical in nature such as forecasts for the industry in which we operate and which may be identified by the use of words like expects, assumes, projects, anticipates, estimates, we believe, could be, future or the negative of these terms and other words of similar meaning are forward-looking statements.

Such statements include, but not limited to, statements contained in this presentation relating to our business, business strategy, expansion, growth, products and services we may offer in the future and the timing of their development, sales and marketing strategy and capital outlook. Forward-looking statements are based on management’s current expectations and assumptions regarding

Shares of Oracle continued their retreat Friday, falling 0.90% to $151.22 in midday trading, as the database and cloud-computing giant remains caught in a broader market reassessment of how much technology companies should be spending — and borrowing — to fund the artificial intelligence buildout.

The decline, while modest on its own, extends a punishing stretch for Oracle that has seen the stock fall dramatically from its highs earlier this year, even as the company’s underlying cloud business continues to post strong growth.

A stock far removed from its peak

Oracle’s current price tells only part of the story without context from where the stock has traveled this year. The stock’s 52-week high of $345.72 was set on September 10, 2025, while its 52-week low of $134.57 came on April 10, 2026. At Friday’s level near $151, shares remain much closer to that low than to the highs reached less than a year ago — a decline that reflects a dramatic shift in how investors are pricing Oracle’s aggressive AI infrastructure bet.

That volatility has been particularly pronounced in recent weeks. Oracle is on pace for its worst month since 2001, a sharp reversal following the strongest month in a generation — the stock had surged 39.9% in May, its best monthly performance since February 2000, driven by enthusiasm over the company’s AI-related order backlog.

The earnings report that triggered the slide

Much of Oracle’s recent struggles trace back to its fiscal fourth-quarter earnings report, which beat Wall Street’s expectations on the surface but rattled investors over the company’s spending plans. Oracle reported adjusted earnings of $2.03 per share, ahead of the $1.96 analysts had expected, on revenue of $19.18 billion versus a $19.10 billion estimate, with revenue up 21% year over year. Despite beating those numbers and raising its profit forecast, the stock still tumbled. Shares dropped 10% in extended trading after Oracle disclosed plans to raise more money to finance its AI buildout, with the company saying it foresees raising $40 billion through additional debt and equity financing, including a previously announced $20 billion share sale.

The scale of that financing push, layered on top of what the company had already raised, is what spooked investors. That $40 billion in fresh financing comes after Oracle already raised $43 billion in debt and $5 billion in equity during fiscal 2026 — a combination that has concerned investors given lingering uncertainty about whether demand for artificial intelligence can ultimately justify that much new capital.

The cash flow picture behind the spending

The financial commitments tied to Oracle’s AI expansion have shown up clearly in its cash flow statements. For the fiscal year, Oracle reported $23.7 billion in negative free cash flow, with depreciation nearly doubling to $7.62 billion, while capital expenditures jumped 162% to $55.7 billion. Looking ahead, the company has signaled spending will remain elevated. Oracle’s new chief financial officer, Hilary Maxson, said the company’s net cash outlay for capital expenditures in fiscal 2027 will be around $70 billion, excluding $20 billion to $25 billion in prepayments from customers and timing impacts.

A workforce reshaped around AI priorities

Alongside the spending increases, Oracle has been making significant changes to its workforce as it reorients the business toward AI and cloud infrastructure. Oracle’s recent regulatory disclosures show a notable restructuring that reduced its workforce by 13%, alongside a record $638 billion in remaining performance obligations. Coverage of the filing put a more specific number on those job losses. Oracle disclosed in its latest annual report that it cut about 21,000 jobs over the past fiscal year, shrinking its workforce roughly 13% as the company reshapes its business around AI.

Where the demand is coming from

Despite the financial strain, Wall Street has pointed to one customer in particular as the anchor behind Oracle’s massive backlog of future business. Bank of America analysts, who recommend buying Oracle shares, said over 50% of the company’s remaining performance obligation comes from OpenAI. Oracle’s leadership has also emphasized the physical scale of the infrastructure buildout underway. Oracle CEO Clay Magouyrk said on a conference call with analysts that the company is looking to bring online almost one gigawatt worth of computing power in the current quarter alone, roughly matching the total brought online for all of fiscal 2026.

That data center expansion has continued to draw outside investment as well. Related Digital and Blackstone said they secured funding for a $16 billion Oracle data center site in Michigan.

Mixed signals from analysts

Not all of Friday’s pressure traces back to the broader AI spending debate — some of it appears tied to company-specific financing mechanics. One recent analyst note warned that preferred stock conversions and at-the-market equity issuances may dilute shareholders and pressure Oracle’s stock price.

Even so, some independent analysis has pushed back on the idea that Oracle’s long-term growth story is in jeopardy. Investment firm Evercore said Oracle’s 10-K filing further strengthens the view that the company’s outlook for fiscal 2027 remains intact, despite ongoing investor concerns about the scale of its spending.

Part of a broader sector retreat

Friday’s dip in Oracle shares is unfolding alongside declines across much of the rest of the technology sector, as investors reassess AI-related valuations more broadly following a long rally. Several of the market’s largest technology names were trading lower in the same session, reflecting a pattern of selling that has spread well beyond any single company’s specific circumstances.

What investors are watching next

With Oracle’s next earnings report not expected until September, investors are likely to spend the coming weeks parsing the company’s spending disclosures, its OpenAI-anchored backlog, and broader sentiment around AI infrastructure investment for clues about where the stock goes from here. Oracle delivered more than 1.2 gigawatts of data center capacity in fiscal 2026, underpinning 77% year-over-year growth in its cloud infrastructure business — a figure bulls point to as evidence that demand remains robust even as the stock continues to struggle. Whether that underlying growth can eventually outweigh concerns about Oracle’s ballooning capital needs remains the central question hanging over the stock as it searches for a floor well below its highs from less than a year ago.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Another thing not detailed in the report is what proportion of the Privy Purse income has been spent by the King personally and what proportion of it has been spent for official royal duties.

This matters because the King only voluntarily pays tax on income spent personally, meaning the King can effectively deduct royal business from his tax bill.

The King also does not pay tax on the Sovereign Grant, which is money paid from the Treasury to the Royal Household to pay for official duties.

This system is a bit like how a self-employed person can file expenses on their self-assessment tax return for things like uniform or training.

Except that the King has two tax-free ways in which he can he can fund official duties.

Also, what counts as official duties is very different from what a regular self-employed taxpayer can expense.

For example, the untaxed Sovereign Grant can be used to fund the staff costs and running expenses of the King’s official household while untaxed official duties that can be paid by Privy Purse include the personal income of working members of the Royal Family.

The Keeper of the Privy Purse, James Chalmers, said: “While Royal finances can sometimes appear complex, the underlying system is clear in principle, structured in law and refined over time to ensure the Monarch can serve with independence, accountability and in the long-term interests of the nation.”

A retired FBI agent says investigators may be closing in on the masked man caught on Nancy Guthrie’s home security camera the night she disappeared, raising fresh questions about why no arrest has been made nearly five months into the case.

Nancy Guthrie, the 84-year-old mother of “Today” co-anchor Savannah Guthrie, went missing on February 1 from her home in the Catalina Foothills, a suburb of Tucson, Arizona. Investigators believe she was abducted overnight, and her case has remained one of the most closely watched missing-persons investigations in the country in the months since.

A retired agent’s confident prediction

Speaking on SiriusXM’s “The Megyn Kelly Show” Tuesday, retired FBI Special Agent Maureen O’Connell said she believes law enforcement is nearing a breakthrough in identifying the masked figure seen on Guthrie’s doorbell camera footage. “I think they’re close right now to pulling this case together,” O’Connell said. “That’s what my sources are telling me… Things are happening.”

O’Connell went further when pressed for specifics, putting a number on her confidence level. Asked directly about the masked individual, she said, “I think they’re getting close to the porch guy. And when they get the porch guy, the floodgates shall swing open.”

The remarks visibly surprised the show’s host. “What?!” Kelly responded, before asking O’Connell to elaborate on why she believed authorities were nearing an answer. When Kelly followed up by asking for her level of confidence, O’Connell put the figure at “75 percent.”

Why the case has moved so slowly

O’Connell offered an explanation for why nearly five months have passed without a public arrest, despite the doorbell footage being replayed repeatedly across television and social media. She argued that the delay reflects the meticulous nature of building a case rather than a lack of leads.

“You’re gonna have the greatest defense attorney in the world handling this case, whoever takes it,” O’Connell said, explaining that prosecutors have to plan for the possibility that key evidence could later be ruled inadmissible. “So you have to operate under the assumption that a couple of big chunks of your evidence may get tossed. So you have to put a case together in such a way that it would withstand losing some of these chunks of evidence.”

She described the methodical approach investigators are likely taking from the earliest stages of the case. “From day one, you’re doing your trial prep, practically,” O’Connell said. “Everything you do is geared toward the trial and prosecution.”

Pima County Sheriff Chris Nanos, whose department has led the investigation alongside the FBI, has made similar comments in recent weeks emphasizing the importance of conducting the investigation “by the book” rather than rushing toward an arrest.

What the doorbell footage shows

The security footage at the center of the case was released roughly 10 days after Guthrie vanished and has become one of the most widely circulated pieces of evidence in the investigation. The video shows a masked figure standing on Guthrie’s porch, staring directly into the camera lens, in what authorities have described as an apparent attempt to tamper with the doorbell device itself.

According to multiple accounts of the footage, the individual appeared to be carrying a pistol and held a flashlight in his mouth while using a gloved hand, and later flowers pulled from Guthrie’s garden, in an apparent attempt to obscure the camera’s view. Investigators have publicly confirmed that the person in the footage appears to be armed and that the video was captured shortly before Guthrie’s disappearance.

Beyond the visual evidence, investigators have pursued other forensic avenues. DNA evidence connected to the case has been sent to the FBI’s laboratory in Quantico, Virginia, for testing, though no suspects have been publicly named as of Friday.

A case shaped by a chilling ransom note

The renewed attention on the “porch guy” footage comes in the same week that the contents of a second ransom note sent in connection with Guthrie’s disappearance became public. According to multiple law enforcement sources, that note, sent in February, indicated that Guthrie had died shortly after she was taken, with the senders expressing regret over her death and making no further demands for payment.

A separate, earlier note had focused on demanding payment for her safe return and included specific details about her home, including a broken floodlight in the yard and a description of her clothing — details investigators believe lent credibility to the communication. Authorities have said both notes were sent from the same IP address, deepening their belief that they originated from whoever was responsible for Guthrie’s disappearance.

Community alerts issued by both authorities and Guthrie’s family in the weeks following her disappearance had also noted that she was in poor health at the time she vanished and did not have access to her necessary emergency medications, a detail that heightened concerns for her safety from the earliest days of the search.

Savannah Guthrie keeps the case in the public eye

Throughout the five-month investigation, Savannah Guthrie has remained one of the most consistent public voices pushing to keep attention on her mother’s case, regularly using her platform on “Today” to renew appeals for information. In an emotional segment last week, she told viewers, “Her family cannot be at peace, no matter how much I try to come out here every day and smile and find that joy.”

No confirmation from official sources

Despite O’Connell’s optimistic timeline, neither the FBI nor the Pima County Sheriff’s Department has publicly confirmed that an arrest is imminent. Officials have continued to circulate reward notices and appeal for tips related to the masked suspect, while declining to comment further on the specifics of where the investigation currently stands.

For now, the case remains open and unresolved nearly five months after Guthrie’s disappearance, with investigators publicly maintaining a cautious posture even as outside voices like O’Connell suggest a resolution may be closer than it has appeared from the outside. Anyone with information related to the case has been urged to contact the FBI directly as the search for answers continues.