On July 20, Oracle fell 3.23% in regular trading, trading at $121.89/share, with turnover of $6.74 billion. The decline was driven by a significant target price cut from Rothschild & Co Redburn and mounting data center cost pressures.

Rothschild & Co Redburn slashed its Oracle target price from $155 to $110 — well below the current trading level — while maintaining a Sell rating. Meanwhile, Oracle's $16.5 billion AI data center project in New Mexico has been forced to replace its planned natural gas power plant with a fuel cell solution due to environmental approval setbacks, adding billions in unexpected costs. Its Wisconsin project has also incurred over $100 million in additional regulatory compliance expenses.

Adding to investor concern, Oracle's credit default swap spread recently surged to a record 198.23 basis points, with S&P having already downgraded its rating to BBB- — just one notch above junk status. The combination of ballooning AI infrastructure costs, deteriorating credit metrics, and a bearish analyst call continues to erode market confidence in the company's aggressive capital expenditure strategy.

(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.)