Oracle moves to raise $20 billion in stock and bonds for AI expansion
Oracle has filed to raise $20 billion split between common stock and bonds to finance its artificial intelligence and data center expansion, sending its shares down sharply.
Oracle filed to sell $20 billion in securities, dividing the capital raise evenly between $10 billion in common stock and $10 billion in bonds, according to reporting by Kelly Cloonan for The Wall Street Journal and coverage from CNBC. The company launched the offering to secure financing for its artificial intelligence buildout, data center expansion, and chip purchases.[3][6][9][4]
The announcement triggered an immediate selloff in Oracle's shares. Early market reports tracked declines of 4.9% to more than 5%, with Unusual Whales reporting the stock dropped about 9% to approximately $119 later in the session. Investors reacted to concerns over equity dilution, higher debt loads, and the heavy capital expenditure required for AI infrastructure, even though the total sum aligned roughly with previous guidance.[7][2][5][8][1]
The drop pushed Oracle shares down 54% from their high for the year, according to The Kobeissi Letter. In the options market, Unusual Whales reported that traders bid up put options as the stock's Risk Reversal Skew rose to +0.03, reaching its highest level since at least April.[2][1]
Key facts
- Oracle filed to raise $20 billion through a split offering of $10 billion in common stock and $10 billion in bonds.
- The capital raise is aimed at funding AI initiatives, data center construction, and chip acquisitions.
- Oracle shares fell between 4.9% and 9% following the disclosure, touching roughly $119 per share.
- The decline put Oracle stock down 54% from its high of the year, according to The Kobeissi Letter.
- Investor selling was driven by worries regarding dilution, increasing debt, and intensive AI spending, despite the raise size roughly matching past guidance.
- Oracle's Risk Reversal Skew climbed to +0.03, hitting its highest mark since at least April as demand for put options increased.
Sources · 9 sources
- UW
unusual_whales@unusual_whalesPost on X ·
$ORCL down ~9% to $119 after filing to raise $20B ($10B stock, $10B bonds) for AI Risk Reversal Skew just jumped to +0.03, its highest since at least April. Traders are paying up for puts https://t.co/mSwm33Il8B
Open source - TK
The Kobeissi Letter@KobeissiLetterPost on X ·
BREAKING: Oracle stock, $ORCL, falls over -5% after announcing plans to raise $20 billion through equity and debt issuances to fund its AI buildout. The stock is now down -54% from this year's high. https://t.co/oWJntBH8xS
Open source - TE
TechmemeArticle ·
Filings: Oracle is selling $10B in common stock and $10B in bonds, as it rushes to get financing for its data center buildout and chip purchases; ORCL falls 5%+ (Kelly Cloonan/Wall Street Journal) Kelly Cloonan / Wall Street Journal : Filings: Oracle is selling $10B in common stock and $10B in bonds, as it rushes to get financing for its data center buildout and chip purchases; ORCL falls 5%+ — The software company is selling $10 billion in common stock and $10 billion in bonds — Oracle plans to raise $20 billion …
Open source - AG
AGTP@AGTPinsightsPost on X ·
BREAKING: Oracle has kicked off a $20 billion capital raise to fund its AI spending. https://t.co/nQUE41V8T5
Open source - MA
MarketWatch@MarketWatchPost on X ·
Oracle’s stock falls as the company details plan to raise $20 billion https://t.co/57ddcvs3dS
Open source - TE
Techmeme@TechmemePost on X ·
Filings: Oracle is selling $10B in common stock and $10B in bonds, as it rushes to line up financing to pay for its data center buildout; ORCL falls 5%+ (@kelly_cloonan / Wall Street Journal) (Visit Techmeme dot com for the link and full context!)
Open source - *B
*Walter Bloomberg@DeItaonePost on X ·
ORACLE SHARES FALL 4.9% AFTER CO ANNOUNCES PLANS TO RAISE $20 BLN THROUGH BOND AND STOCK SALES
Open source - MN
Mario Nawfal@MarioNawfalPost on X ·
🚨 Oracle stock drops more than 5% after the company files to raise $20 billion. The plan splits evenly: $10 billion in new shares and $10 billion in bonds to fund its AI and cloud infrastructure expansion. Investors sold off on concerns over share dilution, rising debt levels, and the heavy capital spending required to support AI growth even though the amount was roughly in line with previous guidance. Source: Reuters / Writer: Bri
Open source - CN
CNBC@CNBCPost on X ·
Oracle files to sell $20 billion in new stock, bonds to finance AI buildout https://t.co/eaXzQc6hwe
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