Oracle's stock price dropped 8.8% following the company's announcement of a plan to raise approximately US$20 billion through a combination of stock and bond sales. Regulatory filings indicate that Oracle intends to utilize these proceeds for general corporate purposes, including capital expenditures, debt repayment, and future investments specifically aimed at expanding its AI infrastructure. Despite issuing a long-term revenue forecast of at least US$225 billion for fiscal 2030 during a recent investor day, the market reaction has been negative. Investors appear increasingly concerned about the scale of debt accumulation required to fund Oracle's aggressive AI buildout, with shares currently trading at half their year-to-date high and down significantly over the past year. To achieve positive free cash flow by the second half of 2028, Oracle plans to leverage vendor financing, customer-provided hardware, and prepayments. However, analysts warn that the strategy carries significant risk if AI-related demand does not meet expectations, noting that the company is currently spending more than it generates in revenue. The stock faces additional headwinds from a downgrade by S&P to BBB- and concerns regarding its heavy reliance on OpenAI, which remains unprofitable. While Wall Street maintains a 'Strong Buy' consensus with a price target suggesting nearly 100% upside, the deterioration in risk sentiment is evident in Oracle's credit default swaps and sustained pressure on its bonds.