Oracle Stock Plummets Amid Project Jupiter Debt Concerns
Oracle's stock plummeted 3.6% on Wednesday, closing at $139.59 after the company issued a force majeure notice related to its Project Jupiter data center construction in New Mexico.
The force majeure notice was sent to Blue Owl Capital, a subsidiary responsible for developing the facility. This move would grant Oracle flexibility to postpone payment obligations if the project fails to launch as planned in 2028.
Project Jupiter is a crucial component of Oracle's broader Stargate AI infrastructure initiative, but it has faced various obstacles, including regulatory challenges and community resistance.
The company's debt securities also saw significant movement, with credit default swaps reaching an all-time high. Oracle's 6.7% bonds maturing in 2056 saw their yield surpass 8% for the first time in history, reflecting investor demands for greater returns to offset perceived risk.