Overview
- Oracle shares have fallen roughly 30% to 39% in recent weeks, erasing significant market value, according to multiple reports.
- Bloomberg reported that five-year credit-default swaps have roughly tripled, now costing about $111,000 per year to insure $10 million of Oracle debt.
- Total debt has climbed above $100 billion after an $18 billion issuance, and coverage cites plans to raise about $38 billion more to fund AI infrastructure.
- Baird cut its price target to $315 but kept an Outperform rating, while Jefferies reiterated Buy at $400 and KeyBanc noted waning AI sentiment and a challenging credit trajectory.
- Oracle disclosed a 359% jump in remaining performance obligations to $455 billion and raised long-term revenue goals, even as OCI’s ~3% cloud share, lagging margins, and a reported $300 billion OpenAI deal underscore execution and concentration risks.