Oracle Hits 52-Week Low, S&P Cuts to BBB- Amid $95B Capex Plan
ORCL is trading near its 52-week low of $121.5 (3.5% above the low).
Summary
Oracle shares plunged to a 52-week low near $121.50, down over 35% year-to-date, as the market digests the company's aggressive $95 billion capex plan for FY2027 and a credit downgrade to BBB- by S&P. The downgrade reflects concerns over rising debt and negative free cash flow tied to the massive AI infrastructure build-out. This follows the June 11 sell-off after capex guidance spooked investors, and the June 16 disclosure of $55.7 billion in FY2026 capex. Adding to the pressure, New Mexico regulators again denied a gas pipeline right-of-way for the Project Jupiter data center, clouding its fuel supply and timeline. On the positive side, Oracle secured a potential Japan air-gapped cloud deal and expanded OPERA Cloud Central at Loews Hotels, but these are overshadowed by the financing overhang. The company is seeking $40 billion in debt and equity this fiscal year, with a $20 billion at-the-market offering already in place. The record $638 billion backlog, including a $300 billion OpenAI deal starting in 2027, provides a long-term growth anchor, but near-term execution and funding risks dominate.
At the time of this announcement, ORCL was trading at $125.70 on NYSE in the Technology sector, with a market capitalization of approximately $364.1B. The 52-week trading range was $121.50 to $345.72. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.