By Piyush Shukla
Publication Date: 2025-11-26 15:18:00
Oracle stock has plunged about 30% in the last month, raising alarm among investors worried about the company’s mounting debt and heavy reliance on its mega AI deal with OpenAI. Despite the sharp decline, some analysts believe ORCL may be oversold, signaling a potential buying opportunity for those looking for it Buy the dip.
The company’s debt load has skyrocketed dramatically as billions of dollars in new bonds and large loans have been issued, pushing total debt to alarmingly high levels for a software giant. To finance its massive buildout of AI and cloud infrastructure, Oracle’s free cash flow turned negative and stood at about -$5.9 billion, its weakest level in decades. Credit market signals signaled caution as the cost of insuring against default rose sharply. The debt-to-equity ratio is now well above industry norms, putting pressure on both shareholders and bondholders.
Oracle’s massive investments in AI and cloud have not yet translated into strong profits. Edges of clouds…
