Oracle Shares Plummet as Debt Concerns and Massive Spending Plans Unfold

Oracle's shares plummeted by 11% overnight after the company announced its fourth-quarter results and outlined massive spending plans to fuel growth. The tech giant reported a 21% surge in revenue to $19.18 billion, exceeding Wall Street's consensus estimate of $19.10 billion.

The company's backlog surged 363% year-over-year to a record $638 billion, surpassing the combined backlogs of Alphabet and Microsoft. However, investors remain concerned about Oracle's rising debt levels, which increased by 48% to $218.7 billion in the latest quarter.

Oracle plans to spend up to $95 billion on capital expenditures for fiscal 2027, including $70 billion in direct spending and an additional $20-25 billion for prepayments. The company aims to raise $40 billion in debt and equity this fiscal year, which is a rare move for a Big Tech firm of its size.

Analysts have mixed views on Oracle's future prospects. D.A. Davidson analyst Gil Luria described the results as 'mixed,' while Daniel Newman, CEO of The Futurum Group, said there were more positives than negatives in the report.