On July 16, Oracle fell 3.69% in regular trading, trading at $127.495/share, with turnover of $9.71 billion. Despite a brief lift from its NetApp cloud storage partnership announced the prior day, persistent concerns over credit deterioration and runaway AI spending resumed pressure on the stock.

S&P Global recently downgraded Oracle's long-term issuer credit rating from BBB to BBB-, placing it just one notch above speculative (junk) grade. The rating agency cited Oracle's FY2027 capital expenditure projections surging to $90-95 billion — well above the prior $60 billion estimate — driven by AI chip procurement and new data center construction. Free operating cash flow deficit is expected to widen to a staggering $42 billion, nearly double earlier projections. Additionally, S&P flagged heavy reliance on OpenAI, which accounts for nearly half of Oracle's remaining performance obligations, as a key concentration risk should the AI startup encounter financial difficulty.

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