Oracle Turns to Wall Street for $20 Billion to Bankroll Its AI Boom

Oracle stock slips premarket after pricing a $20B debt and equity offering. Here is what the massive capital raise means for ORCL.

Oracle Corporation (NYSE:ORCL) stock fell in Tuesday premarket trading after the company priced concurrent equity and debt offerings totaling about $20 billion in gross proceeds.

Oracle Prices $20 Billion Capital Raise

The company priced 86.21 million common shares at $116 each, with the equity offering expected to generate approximately $9.9 billion in net proceeds after underwriting discounts and estimated expenses.

The company also priced $10 billion of senior notes across five tranches: $2 billion of 7.000% notes due 2029, $1.75 billion of 7.450% notes due 2031, $2.25 billion of 7.850% notes due 2033, $2.5 billion of 8.000% notes due 2037 and $1.5 billion of 8.650% notes due 2046.

Both offerings are expected to close Nov. 4, subject to customary conditions, and neither depends on completion of the other.

Oracle said it may use the proceeds for capital expenditures, debt repayment, investments or acquisitions, dividends, and share repurchases.

The raise aligns with Oracle’s plan to limit additional capital-market funding for its fiscal 2027 through fiscal 2030 investment cycle to $20 billion, including an expected $10 billion in equity and $10 billion in gross debt, excluding refinancing.

Oracle expects capital spending to peak in fiscal 2027 and fiscal 2028 before declining in fiscal 2029, supporting free cash flow of at least $30 billion that year.

Technical Setup Remains Weak

Oracle trades below its 20-, 50- and 200-day moving averages. The stock is 11% below its 20-day SMA, 15.8% below its 50-day SMA, and 24.1% below its 200-day SMA.

Its RSI stands at 38.38, approaching oversold territory, while the MACD remains below its signal line.

Key support sits at $114.50, near Oracle’s 52-week low. The stock has declined 53.76% over the past 12 months.

Oracle also formed a death cross in January, when its 50-day SMA crossed below the 200-day SMA.

Analysts Remain Positive

Oracle carries a Buy consensus rating with an average price forecast of $249.44. Recent analyst actions include:

Stephens & Co.: Upgraded Oracle to Overweight with a $213 price forecast on Nov. 2.
TD Cowen: Maintained a Buy rating and $240 price forecast on Oct. 29.
Oppenheimer: Maintained an Outperform rating and $275 price forecast on Oct. 29.

Oracle Edge Rankings Show Strong Growth

Oracle’s Benzinga Edge scorecard shows a sharp contrast between growth and near-term market performance. The company has a Growth score of 97.63, while its Momentum score is 5.67 and its Value score is 22.61.

The readings indicate Oracle ranks strongly on growth-related metrics relative to the broader market, while its momentum and valuation measures remain comparatively weak.

That split matches the stock’s current technical picture, where growth metrics remain strong even as price momentum stays under pressure.

ORCL Price Action: Oracle shares were down 0.90% at $118.15 during premarket trading on Tuesday. The stock is trading near its 52-week low of $114.50, according to Benzinga Pro data.

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