Oracle Stock Drops Despite Mizuho Analyst's 'Outperform' Rating
Oracle (NYSE: ORCL) saw its stock fall by approximately 7% in early trading, despite a positive rating from Mizuho analyst Siti Panigrahi. The drop occurred even as the analyst reiterated an “outperform” recommendation and maintained his $320 price target for Oracle shares. The decline may be attributed to concerns over Oracle's financial health following a recent credit downgrade due to its heavy investment in Project Jupiter, a massive AI data center being built at a cost of $165 billion. Investors are worried about the company’s ability to fund this project without significant revenue until 2027. Oracle currently holds $37.1 billion in cash but is burning nearly $29 billion annually and faces potential increases in its debt load, which stands at $169.1 billion. While Mizuho remains optimistic about Oracle’s long-term value, the immediate market reaction reflects investor skepticism over short-term financial risks.
Tickers: $ORCL
Topics: AI data center credit downgrade Mizuho analyst rating Oracle Project Jupiter