Oracle shares post worst week in 25 years as investors focus on AI spending and debt
AI Market Summary
Oracle shares posted their worst week in 25 years as investors focused on leverage and cash burn tied to its AI infrastructure buildout. Debt reached about $130B, capex surged, and free cash flow turned deeply negative, raising questions about funding sustainability and upcoming 2027 refinancing needs. The selloff can pressure sentiment across large-cap software and AI-related infrastructure spending narratives.
Impact level
● Medium
Affected assets
NCSKORCL2USD/USDT-0.37%
AI Insight · NCSKORCL2USD/USDTAI Insight
▼ Bearish
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Oracle (ORCL) shares fell 19% over the week, marking their worst weekly performance in 25 years and leaving the stock down about 55% from its September peak. By the end of May, the company had about $130 billion in debt, while fiscal-year capital expenditures surged 162% to nearly $56 billion and free cash flow was almost $24 billion in the red. Oracle plans to raise another $40 billion in Fiscal 2027, after previously issuing $43 billion of debt and $5 billion of equity, fueling investor concern over the financial sustainability of its AI expansion.
