US Markets
Home›US Markets›Equities›Oracle shares hit a 52-week low as investors weigh hea…
Oracle shares hit a 52-week low as investors weigh heavy AI spending
Oracle’s net cash outlays tied to capital expenditures are projected to rise from $48.0 billion in fiscal 2026 to $70.0 billion in fiscal 2027, while S&P cut its credit rating to BBB-.
Oracle shares are trading deep in the red, down about 36.0% year-to-date and reaching a new 52-week low near $120.03, as investor concerns focus more on the cost of building out AI infrastructure than on the company’s longer-term growth outlook, according to Yahoo Finance.
The outlet notes that cloud demand remains strong, with Oracle signing large AI infrastructure contracts that are expected to support accelerating revenue growth for years, following earlier Q3 results that surprised Wall Street.
Still, investors are becoming more selective about AI-linked stocks, with Yahoo Finance pointing to the scale and pace of spending. The report says Oracle’s net cash outlays tied to capital expenditures were $48.0 billion in fiscal 2026, and the company expects that figure to increase to $70.0 billion in fiscal 2027.
Yahoo Finance also highlights credit risk as a key near-term pressure point. It reports that S&P downgraded Oracle’s rating to BBB-, cited by the agency for reasons including enormous AI spending and uncertainty about future profitability, and said concerns extend to whether Oracle can meet its debt obligations.