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Oracle's AI Bet Risks Financial Health | Raleigh News
Oracle’s stock has plummeted nearly 50% from its peak, exposing deep financial strain as AI investments devour profits. Revenue is rising, but gross margins are collapsing and free cash flow is now negative — fueled by massive data center spending and soaring debt. Credit ratings have tanked, with S&P warning of a junk-bond risk and Moody’s issuing a negative outlook, citing Oracle’s heavy reliance on OpenAI and costly, hard-to-cancel leases. Despite bullish revenue forecasts and a huge order backlog, investors must watch closely — the AI boom may be costing Oracle its financial stability…
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