Oracle CorporationORCL
Mentioned
Oracle shares fell about 2% early Wednesday as the cost of protecting the company's debt against default reached a record level. Oracle's five-year credit default swap spread, which reflects the premium investors pay for default protection, has climbed to an unprecedented level, according to Bloomberg data. The company has been increasing spending on artificial intelligence infrastructure, including data centers and cloud capacity, and has relied partly on debt financing to support that expansion. The rise in credit protection costs could increase scrutiny of Oracle's balance sheet and financing strategy, potentially making borrowing more expensive and adding pressure to manage capital spending, debt levels, and cash generation.
Oracle Corporation