Oracle Bonds Plummet as AI Investments Fuel Market Concerns,Insider Selling Rises
NEW YORK – Oracle’s 30-year bond has experienced a significant decline,falling approximately 8 percent since October and currently trading at around 65 cents per dollar,signaling substantial market uncertainty surrounding the tech giant’s aggressive push into artificial intelligence. The downturn reflects investor anxieties over the billions of dollars Oracle is investing in expanding its data centre network to compete for cloud contracts in the burgeoning AI sector.
The company’s substantial debt load, undertaken to fuel this expansion and challenge industry leaders like Microsoft and Amazon, is now under scrutiny. Concurrently, Oracle executives have been selling shares – totaling over $60 million in the last three months, including 40,000 shares sold by CEO Clayton M. Magouyrk in october – despite insiders collectively holding an unusually high 41 percent of the company’s stock.
Adding to the complexity, Chairman and co-founder Larry Ellison has consolidated power, assuming direct control of approximately 40 percent of oracle’s workforce, encompassing key departments like finance, human resources, and legal. this centralization suggests the company is navigating a critical juncture as it pursues major AI contracts and manages a massive data center build-out.
Shareholders will have an prospect to assess ellison’s strategy and leadership at the annual general meeting scheduled for November 18th, a pivotal moment that will indicate whether the market’s concerns are justified or if Oracle’s AI gamble will pay off.
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