Oracle shares have fallen below $135 despite better-than-expected earnings, as investors worry about the company's...

Oracle shares have fallen below $135 despite better-than-expected earnings, as investors worry about the company's massive AI infrastructure spending. Oracle is aggressively building data centers and purchasing high-end chips, financing partly through higher borrowing. A recent credit-rating downgrade has amplified concerns about debt levels and cash generation, even as the company boasts a large AI contract backlog.

What the sources said:

• The Economic Times article (citing Yahoo Finance and WSJ): 'Investors are increasingly questioning whether the company's massive AI investments and cloud expansion will generate sufficient returns to justify the sharp rise in spending.'
• The article further states: 'Rising debt levels, coupled with expectations of additional funding requirements, have made investors cautious about Oracle's balance sheet despite strong long-term growth prospects. A recent credit-rating downgrade has further highlighted these concerns.'
• Oracle's own SEC filing shows revenue of $52.96B and net income of $10.47B for fiscal 2026 (10-K filed June 22, 2026), indicating the scale of operations against which the AI capex is measured.