Oracle tumbles on $20 bln stock-and-bonds sale to fund AI ambitions

Bank of America

03/11/2026 12:17

** Software giant Oracle's ORCL.N shares down 1.5% at $117.44 in premarket trading on Tues after it clinches $20 bln raise to finance AI expansion
** Co late Mon sold ~86.2 mln shares at $116 and $10 bln of bonds across five tenors
** ORCL's stock tumbled 8.8% to finish at $119.22 on Mon after co unveiled the concurrent offerings for general corp purposes, including capex, debt paydown, acquisitions, cash dividends and share repurchases
** Last week, ORCL said it anticipates capital spending to peak this fiscal year and next, and said it wouldn't raise more than $20 bln in additional AI financing through fiscal 2030
** Austin, Texas-based firm has ~3.1 bln shares outstanding post the equity offering
** BofA is global coordinator and joint bookrunner for both offerings, joined by Wells Fargo, Citigroup, BNP Paribas, Deutsche Bank and JP Morgan, among others
** At Mon close, ORCL's stock shed ~39% YTD
** Avg rating of 41 analysts is "buy"; median PT $240, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com))