By Trader Edge
Publication Date: 2025-11-21 16:29:00
TLDR
- Oracle shares have fallen nearly 40% since early September, shedding about $360 billion in market value after announcing plans for huge AI sales growth.
- Around 65% of Oracle’s forecast additional revenue ($300 billion) comes from a single contract with OpenAI, creating concentrated risk.
- Oracle is taking on massive debt to fund AI infrastructure, with total debt exceeding $100 billion, and is planning another $38 billion in bond sales.
- The cost of credit default swaps on Oracle’s five-year bonds has nearly tripled in three months to $11,100 a year per $1 million of bonds.
- Oracle’s net debt has increased to 2.5 times EBITDA, with free cash flow expected to remain negative for five consecutive years.
Oracle shares have cratered since September. The stock has fallen nearly 40% since its peak in early September. This corresponds to a loss in market value of around $360 billion.
The sell-off began after Oracle announced ambitious AI sales…
