On July 17, Oracle fell 3.07% in pre-market trading, trading at $120.42/share, with turnover of $70.55 million. The decline extends a multi-session selloff driven by S&P Global's credit downgrade and mounting concerns over the company's aggressive AI infrastructure spending.

S&P Global recently downgraded Oracle's long-term issuer credit rating from BBB to BBB-, placing it just one notch above speculative (junk) grade. The agency cited structural risk from Oracle's massive AI infrastructure buildout, projecting FY2027 capital expenditures to surge to $90-95 billion and free operating cash flow deficit to widen to $42 billion. Additionally, NetApp issued a correction stating its joint storage service announcement with Oracle was released in error without public disclosure approval, adding to negative sentiment.

S&P specifically flagged Oracle's heavy reliance on OpenAI, which accounts for nearly half of its remaining performance obligations, as a key concentration risk. The downgrade has already widened credit spreads on Oracle's 2036 bonds from 1.75 to 1.84 percentage points.

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