Oracle Stock Hits 52-Week Low Amid Rising Capital Costs and Financing Risks
Oracle (ORCL) stock has fallen more than 50% from its peak in early 2026, hitting a 52-week low. Despite strong financial results—including $19.2 billion in Q4 revenue and record cloud infrastructure growth—investors are concerned about the company's capital expenditures and reliance on external financing to fund AI data center expansion. Oracle’s fiscal 2026 capex surged to $55.7 billion, more than double from the previous year, leading to a free cash flow deficit of $23.7 billion. The firm has already issued $43 billion in debt and plans an additional $40 billion raise for 2027, including a potential equity dilution program. The stock’s decline reflects concerns over rising interest rates under new Federal Reserve Chair Kevin Warsh, which could increase Oracle's borrowing costs and slow its infrastructure build-out. This has led to skepticism about the company’s ability to convert its large backlog into sustainable profitability.
Tickers: $ORCL
Topics: AI capital expenditures cloud infrastructure revenue growth