Oracle shares slide on Monday as debt worries mount alongside AI spending
AI Market Summary
Oracle shares remain under pressure after an S&P debt downgrade that explicitly flags OpenAI exposure as a credit risk, amplifying concerns over a sharply rising leverage profile. Capex has surged, pushing free cash flow to a -$23.7B deficit, while guidance implies over $40B in incremental debt/equity funding, lifting long-dated bond yields into the 7.3%–7.6% range. Technicals also reflect a persistent downtrend.
Impact level
● Medium
Affected assets
NCSKORCL2USD/USDT-0.64%
AI Insight · NCSKORCL2USD/USDTAI Insight
▼ Bearish
Trade now
⚠️ AI-generated insights are based on news content and are provided for informational purposes only. They do not constitute investment advice or represent the views of BingX. Investing involves risk. Please trade responsibly.
Oracle shares extended their decline on Monday, hovering near the stock’s 52-week low of $121.50. S&P recently downgraded Oracle’s debt and explicitly cited OpenAI as a key credit risk, according to figures referenced by Prof G Markets host Scott Galloway. The company’s capital spending rose to $55.7 billion, pushing free cash flow to negative $23.7 billion, while a plan to raise more than $40 billion this year helped lift long-dated bond yields to 7.34%-7.6%. Technical indicators remained weak, with the RSI at 26.55.
