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A stock shedding 59% of its value from a record high sends a clear signal: something about the spending plan worries investors.
Capital expenditures, the money set aside for physical assets like data centers and servers, are at the core of that worry.
Oracle Corporation (ORCL) has telegraphed a sharp rise in those costs for fiscal 2027, and the market has priced in the risk.
To fund the expansion, Oracle has said it intends to raise $40 billion through a combination of new debt and new shares. More debt raises financing costs.
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