Legendary investor Michael Burry is betting against Oracle shares. What you need to know about the bear case for ORCL.

Legendary investor Michael Burry is once again grabbing Wall Street’s attention – this time with a bearish stance on Oracle (ORCL). Burry is known for his forward-thinking moves against the U.S. real estate market in the run-up to the financial crisis and has earned a reputation for identifying risks that many investors miss. So when he reveals a new bearish position on a mega-cap technology stock, the market tends to take notice.

Oracle has been one of the standout beneficiaries of the artificial intelligence (AI) boom, with its aggressive push into AI data centers driving strong gains last year. The company’s massive backlog and deepening relationships with key AI customers have led to an optimistic view that Oracle is positioning itself as a critical backbone of the AI ​​economy. But beneath the surface, this growth story comes with rising leverage, high capital expenditures and execution risks that are becoming increasingly difficult to manage…