🔴 Oracle Corporation is trading 9% down today on a $40B AI infrastructure funding plan and dilution concerns

Oracle Corporation is trading 9% down at $183.25 in pre-market after a sharp post-earnings selloff triggered by a $40 billion capital raise plan for AI infrastructure.

• Investors are reacting negatively to the massive debt and equity funding plan, which is expected to push cash flow into negative territory and raise significant dilution and leverage concerns.
• The selloff comes despite the company beating Q4 revenue and EPS estimates and reporting a robust 93% growth in its IaaS segment.
• Analysts have begun trimming valuations in response to the aggressive spending, maintaining downward pressure on the stock price.