Oracle’s corporate bond rating has been downgraded by S&P to BBB-, the last tier of investment-grade, just one level above “junk grade”
Oracle has taken on nearly $130 billion in debt to expand AI data centers
The $300 billion order OpenAI once promised helped Oracle’s boss rise to become the world’s richest person, but profits on paper do not necessarily reflect the actual amount of orders received
And to support those paper orders, Oracle has forcibly transformed itself from a light-asset company with low operating costs into a high-debt, heavy-asset company
But whether O’s orders can actually be carried out remains uncertain
Oracle is very likely to be the first among ultra-large cloud service providers to begin weakening
Now, overall interest rates in the bond market are rising, and investors do not认可 the company’s massive data center spending
The bond market is sensitive—it is often full of important information that signals potential downside market risk
Also, the descendants of the Ellison family are all in Paramount, so the Ellison family’s own additional bets are on entertainment spending rather than big tech
I agree with @MMMusol’s assessment of O’s situation. When the spring river warms, ducks first notice; for a company preparing for an IPO, which normal executive would willingly resign?
$ORCLB
#美国存储股延续跌势 #美国30年期国债收益率创2002年来新高
Oracle has taken on nearly $130 billion in debt to expand AI data centers
The $300 billion order OpenAI once promised helped Oracle’s boss rise to become the world’s richest person, but profits on paper do not necessarily reflect the actual amount of orders received
And to support those paper orders, Oracle has forcibly transformed itself from a light-asset company with low operating costs into a high-debt, heavy-asset company
But whether O’s orders can actually be carried out remains uncertain
Oracle is very likely to be the first among ultra-large cloud service providers to begin weakening
Now, overall interest rates in the bond market are rising, and investors do not认可 the company’s massive data center spending
The bond market is sensitive—it is often full of important information that signals potential downside market risk
Also, the descendants of the Ellison family are all in Paramount, so the Ellison family’s own additional bets are on entertainment spending rather than big tech
I agree with @MMMusol’s assessment of O’s situation. When the spring river warms, ducks first notice; for a company preparing for an IPO, which normal executive would willingly resign?
$ORCLB
#美国存储股延续跌势 #美国30年期国债收益率创2002年来新高
