Oracle shares slide on credit and cash flow concerns

Oracle Corp. shares fell 6.9% in morning trading Wednesday to $133.31, reversing gains from the previous session when the stock closed up more than 4%.

The decline comes as investors focus on the company's credit position and delayed revenue from a major customer. S&P Global downgraded Oracle to BBB- in July, placing the company one notch above speculative grade. That rating is drawing renewed attention Wednesday.

OpenAI, which represents approximately half of Oracle's $638 billion contracted backlog, will not begin making payments on its contract until 2027. This timing leaves Oracle carrying large capital expenditures without corresponding near-term cash receipts.

A Form 4 filing disclosed Wednesday showed an executive vice president reduced their Oracle holdings by about 3.93%.

Oracle remains below its key moving averages on technical charts, with a death cross pattern still in place. Mizuho reiterated an Outperform rating on the stock following updates on Project Jupiter data center progress.

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