On July 28, Oracle fell 3.35% in regular trading, trading at $115.64/share with turnover of $614 million, giving back gains from the prior session when the stock had risen over 5% alongside the cloud computing sector.

The reversal reflects persistent headwinds surrounding the company's credit profile and AI infrastructure spending. S&P Global Ratings recently downgraded Oracle to BBB-, just one notch above junk, citing uncertainty over returns from massive AI investments. The company's five-year credit default swaps surged to approximately 203 basis points, the highest level in nearly 18 years. Meanwhile, Wisconsin regulators are requiring over $7 billion in collateral for its data center project, adding more than $100 million in annual costs, while its New Mexico facility faces billions in unexpected expenses due to environmental permitting obstacles.

With fiscal year operating cash flow of $32 billion against capital expenditures of $55.7 billion producing negative free cash flow of $23.7 billion, and year-to-date losses exceeding 37%, market skepticism over Oracle's aggressive AI infrastructure buildout continues to cap recovery attempts.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)