Breaking: Michael Burry exposes Oracle's accounting trick they've been using to inflate revenue
Burry claims "Oracle manufactured an extra 19% of revenue" through these steps:1. A customer prepays Oracle $10B today for cloud capacity to be delivered 3 to 5 years from now2. Oracle books that as an $11.9B contract liability, accreting interest at 6% over the wait3. When Oracle finally delivers the capacity, it recognizes the full $11.9B as cloud infrastructure revenue against the original $10B4. The extra $1.9B becomes revenue for capacity that was never used and work that was never performedThis would be bad news for $Oracle(ORCL.US) investors if true
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