Skip to playerSkip to main content
  • 4 minutes ago
Oracle shares fell as investors assessed its growing debt load and AI infrastructure spending. The company reported negative free cash flow and plans to raise more than $40 billion through debt and equity this year.
Transcript
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Oracle shares fell Monday as investors weighed the company's rising debt burden
00:07against its artificial intelligence infrastructure spending, according to Benzinga.
00:12In a recent podcast episode of Prof G Markets, Ed Elson modeled a worst-case scenario in which
00:18declining revenue and pricing could leave OpenAI with a $165 billion annual loss by 2030.
00:24S&P recently downgraded Oracle's debt and cited OpenAI as a key credit risk,
00:30according to figures discussed on the podcast.
00:32Oracle's free cash flow fell to negative $23.7 billion as full-year capital expenditures
00:38surged 162% to $55.7 billion.
00:43Spending could reach $80 billion to $100 billion in fiscal 2027.
00:47Oracle plans to raise more than $40 billion through debt and equity this year.
00:51The company reported $67 billion in annual revenue and a record $638 billion backlog.
00:58Shares fell 3.17% to $122 to $40, near their 52-week low of $121.50, according to Benzinga
01:05ProData.
01:06For all things money, visit Benzinga.com.
01:09You
Comments