Oracle Corporation is trading 11.2% down today at $178.66 as investors react to a $40 billion AI infrastructure financing plan that is expected to push cash flow negative.
- Despite record fiscal Q4 results and strong cloud demand, the proposed mix of new equity and debt has raised significant concerns regarding shareholder dilution and increased leverage.
- Analysts have begun trimming valuations as the market questions the risk-reward of the aggressive spending ramp required to support the company's AI growth targets.