📉 Oracle shares fell 19% in a week
Oracle (ORCL) shares have seen their worst performance since the dot-com crash of 2001. Investors are spooked by $130 billion in debt and a sharp 162% increase in CapEx (up to $56 billion), which resulted in a negative free cash flow of $24 billion.
🌍 This is an example of extreme financial leverage in the AI arms race. Companies are sacrificing liquidity to compete with Microsoft and AWS.
👤 A signal that the AI boom carries financial risks even for tech giants. Rising debt levels could trigger high stock volatility.