Oracle sells $20 billion worth of common stock. What does this mean for ORCL and should you buy shares now?

oracle (ORCL) I just made a bold move that sends mixed signals to investors. The software giant announced a $20 billion stock distribution agreement, effectively giving it the flexibility to sell shares in the market over time. The move comes at a crucial time for Oracle as the company ramps up spending to expand the capacity of its cloud infrastructure business while facing increased scrutiny over leverage and execution risk.

On the one hand, the announcement can be read as a vote of confidence. Oracle has a huge cloud backlog and has already signed deals with some of the world’s largest AI and technology companies, creating an urgent need to expand data center capabilities. Raising equity alongside debt could help the company finance this growth while…