Oracle's AI Ambitions Face Debt and Market Scrutiny
Oracle is experiencing significant stock volatility following a surge driven by AI optimism. Despite record highs in September, the company's shares have plummeted by approximately 33-46%. This decline is linked to investor concerns over Oracle's substantial debt, which has grown to over $82 billion, with a debt-to-equity ratio around 520%, driven by massive investments in AI infrastructure and data centers.
The company's reliance on partners like OpenAI and its aggressive expansion strategy are under scrutiny amid broader industry questions about the sustainability of AI spending and potential circular trading in partnerships. Analysts warn that Oracle's balance sheet is stretched, and the coming months will be critical for its high-stakes AI bet.


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Oracle
Oracle is navigating a turbulent period as significant concerns arise regarding the sustainability of the current artificial intelligence boom and ...


