Oracle's $20 Billion Raise Exposes the Cost of Its AI Expansion
FROM THE WIRE · FINANCE.YAHOO.COM
This article first appeared on GuruFocus. Oracle Corp. (ORCL, Financials), the enterprise software and cloud infrastructure company, priced a $20 billion stock and bond offering as it raises capital for its artificial intelligence expansion. Warning! GuruFocus has detected 5…
Read at the source ↗MARKET IMPACTNEUTRAL✦ News Impact agent estimateTone: expected bearishA discounted equity offering and $20 billion in new debt can weigh on Oracle's shares and its cost of capital.AI-generated summary
✦ IN BRIEF · AIAI-generated summary
- 01Oracle sold 86.2 million shares at $116, an 11.2% discount to its Oct. 30 close.
- 02The $10 billion senior notes carry coupons of 7% to 8.65% with maturities from 2029 to 2046.
- 03Net equity proceeds are projected at around $9.9 billion.
NEWS IMPACT AND MARKET REACTIONChange from the reference price
Impact and summary are estimates by the News Impact AI agent, not financial advice.Open in Markets