As Oracle Reveals Higher Restructuring Costs, Should You Still Buy ORCL Stock or Stay Far Away?

The case of Oracle (ORCL) has been a curious one. After making itself suddenly relevant in the AI race by becoming part of the $500 billion “Stargate Project,” and after inking a blockbuster $300 billion deal with OpenAI, Oracle was in the cloud infrastructure big leagues with the likes of Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL).

However, although this helped propel Oracle Chief Technology Officer Larry Ellison to become the richest person in the world for a brief moment, it all came crashing down after reports emerged about whether the company had the wherewithal to fund this infrastructure buildout. Credit default spreads on Oracle's swaps reached levels not seen since the global financial crisis as market participants grew wary of its burgeoning debt levels.