
Oracle shares have dropped sharply amid fading AI enthusiasm, with analysts noting debt concerns, negative cash flow, and rising credit risk ahead of its earnings release.
Oracle's stock has declined 33% since September 10 despite previously strong earnings, as optimism around the AI sector cools. Analysts attribute the sell-off to high debt levels, negative free cash flow, and rising credit default swap costs, which have reached their highest point since March 2009. These factors are prompting investor caution ahead of Oracle's upcoming earnings report.