Oracle: 52 weeks down, credit ratings down to trash. Level

The Oracle share price reached $121.50 on Friday, a 52-week low of about 63 per cent from the highest point of $345.72. On 9 July, the S&P global rating downgraded Oracle ' s credit rating from BBB to BBB-, only above the garbage level. This reduction is due to Oracle ' s huge expenditure on AI infrastructure, which is expected to reach between $90 billion and $95 billion in fiscal year 2027. The current market capitalization of Oracle is approximately $365.0 billion, with negative cash flows and concentration risks, with about half of the remaining performance obligations coming from a single client, OpenAI. Although management projected an increase of about 34 per cent in revenue for the current fiscal year, the increase in non-GAAP earnings per share was only 18 per cent。