Overview
- An FT analysis finds Oracle has lost about $315 billion in market value since announcing a $300 billion OpenAI agreement on September 10.
- Credit risk gauges have risen, with the cost of hedging Oracle’s debt at a three-year high following roughly $18 billion of bond issuance in September.
- Oracle outlined a capex plan of $35 billion for the current fiscal year and consensus expects annual spending to approach about $80 billion by 2029.
- Company projections presented to analysts target $166 billion in cloud revenue by 2030, with a majority tied to OpenAI from 2027.
- Net debt sits near 2.5 times EBITDA after more than doubling since 2021, and forecasts point to five consecutive years of negative cash flow.