BUZZ - Oracle shares fall due to $20 billion AI financing plan
路透社2026/11/02 15:11Latest updates and news
November 2 - ** On early Monday trading, cloud computing company Oracle (ORCL.N) shares fell 6.2% to 122.61 USD, hitting a more-than-three-month low as the company seeks to raise funds to support its expansion in artificial intelligence.
** According to filings with the US Securities and Exchange Commission (SEC), Oracle (ORCL) will sell 10 billion USD in stock (link) and issue 10 billion USD in bonds (link).
** The company will use the net proceeds from this concurrent offering for general corporate purposes, including capital expenditures, debt repayment, acquisitions, cash dividends, and share repurchases.
** Last week, ORCL said it expects capital expenditures to peak in this fiscal year and the next (link), and pledged to raise no more than 20 billion USD in additional funding for AI business before fiscal year 2030.
** As of August 31, ORCL’s total notes payable and other borrowings amounted to 125.34 billion USD (link); given that its revenue is smaller than its cloud services competitors and it has significant exposure to loss-making OpenAI, investors have closely scrutinized its AI spending.
** Bank of America (BofA) acted as global coordinator and joint bookrunner for this equity offering, with participating institutions including Wells Fargo, Citigroup, BNP Paribas, Deutsche Bank, and JPMorgan.
** As a result, ORCL shares have fallen 37% year-to-date.
** According to LSEG data, among 41 analysts’ recommendation ratings: 34 recommend “Strong Buy” or “Buy”, 6 recommend “Hold”, and 1 recommends “Sell”; the median target price is 240 USD.
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