Oracle Just Hit a Fresh 52-Week Low and Had Its Credit Cut Toward Junk. Has the AI-Capex Panic Overshot?
A fresh low and a credit cut tell one story about the cloud giant. Its $638 billion backlog tells another.
Overview
Shares of Oracle (NYSE: ORCL) touched a fresh 52-week low of $121.50 on Friday. The database and cloud infrastructure company now trades about 63% below its high of $345.72, and its market capitalization has shrunk to about $365 billion.
The new low wasn't even the month's worst news.
Details
On July 9, S&P Global Ratings cut Oracle's credit rating from BBB to BBB-, leaving the company one notch above junk status. The driver was the enormous cost of the AI (artificial intelligence) infrastructure build-out Oracle has signed up for.
Source
Originally published at www.fool.com.
Related Articles
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.