Overview
- Reports said a $10 billion Blue Owl funding plan for Oracle’s planned Michigan AI data center stalled, raising new questions about project financing.
- Oracle shares fell 12% after earnings and then about 6% more following the Michigan report, extending a pullback from September highs.
- The company lifted its fiscal 2026 capital‑spending outlook to roughly $50 billion and sold $18 billion of bonds as credit‑default‑swap costs climbed.
- Citizens maintained a Market Outperform rating with a $342 price target, while RBC cut its target to $250, citing heavy capex and negative free cash flow.
- Oracle highlights scale with 147 data‑center regions live, 64 in the pipeline, large GPU clusters, and an order backlog topping $500 billion from AI customers such as OpenAI, xAI, and Meta, though investors question how much converts to near‑term cash.