Oracle's stock dropped 4% amid a bond market selloff that raised Treasury yields, increasing borrowing costs for its heavy debt-funded AI infrastructure buildout. The company spent $55.7 billion on capital expenditures in fiscal 2026, largely funded by $43 billion in debt and $5 billion in equity. Despite strong AI demand and a large revenue backlog, higher interest rates pressure Oracle's balance sheet and stock price, which is down 23% year to date. Investors should watch Treasury yields and funding costs as Oracle and similar companies like Nebius navigate this challenging financial environment.
Leading US AI companies like Google, Microsoft, Meta, Oracle, and Amazon are driving economic growth with heavy capital spending. However, their rapid investment and financial moves, including Alphabet's $80 billion equity raise and unclear AI spendi...
Oracle's co-CEOs Clay Magouyrk and Mike Sicilia led a historic surge in enterprise software contracts, with cloud infrastructure revenue up 121% and $30 billion in new AI cloud deals in one quarter. However, the stock fell 50% in their first year due...
The Dividend Harvesting Portfolio underwent a major restructuring, exiting 20 positions to focus on higher-conviction stocks like NVDA, ORCL, SPYI, and GPIQ. Despite reducing the number of holdings, the portfolio retained nearly 90% of its forward an...
Oracle's capital spending on AI infrastructure has surged, causing free cash flow to turn sharply negative and shifting funding reliance from internal cash to debt. This shift raises the cost of capital and pressures investment returns, evidenced by ...
This week, US economic data is light, shifting focus to geopolitics and corporate events. President Trump will host Chinese President Xi Jinping to discuss trade, tariffs, Taiwan, and AI, with potential announcements on Chinese purchases of US goods ...
