Oracle Sinks 19% in Worst Week Since 2001 as $130 Billion Debt Fuels AI Fears
Updated
Updated · CNBC · Jun 26
Oracle Sinks 19% in Worst Week Since 2001 as $130 Billion Debt Fuels AI Fears
3 articles · Updated · CNBC · Jun 26
Summary
Oracle shares fell 19% this week, their steepest weekly drop in 25 years, capping five straight daily declines of at least 2.6%.
The selloff centers on Oracle's AI buildout: the company ended May with about $130 billion in debt, fiscal 2026 capital spending jumped 162% to nearly $56 billion, and free cash flow was negative almost $24 billion.
Oracle said earlier this month it plans to raise another $40 billion in fiscal 2027 after issuing $43 billion of debt and $5 billion of equity last fiscal year, keeping leverage and dilution at the center of investor debate.
The stock is now down about 55% from its $900 billion market-cap peak in September, even as 71% of analysts still rate it a buy and management presses ahead with new data centers in Michigan, New Mexico and Texas.