Philippe Laffont’s Coatue Management liquidated its entire Oracle position during the first quarter of 2026. The move stems from growing institutional anxiety regarding capital expenditure sustainability.
Coatue also questioned the near-term monetization of artificial intelligence ventures. Oracle recently increased its full-year capex guidance to fund infrastructure expansion.
Key partner OpenAI reportedly missed revenue targets. These developments increased doubts that heavy AI spending will translate into immediate software cash flows.
Coatue identified these factors as significant valuation and capex sustainability risks.