Oracle is underwater on its 'astonishing' $300B OpenAI deal
4 days ago
- #Oracle
- #Market Trends
- #OpenAI
- Oracle's stock has lost $315bn in market value since announcing a $300bn deal with OpenAI.
- Investor concerns arise from Oracle's debt-financed data farm bet on OpenAI, making it a proxy for OpenAI in the US public market.
- Oracle aims for $166bn in cloud computing revenue by 2030, with significant capex investments, but faces negative cash flow forecasts.
- Oracle's net debt is at 2.5 times EBITDA, expected to nearly double by 2030, raising risks of unfunded expansion.
- Recent OpenAI deals, including those with Broadcom and Amazon, haven't boosted share prices, questioning the value of such announcements.