On August 6, Oracle fell 4.09% in pre-market trading, trading at $138.51/share, with turnover of $11.83 million, as credit market concerns over its aggressive AI infrastructure buildout continued to weigh on the stock.

The decline follows S&P Global Ratings' downgrade of Oracle's long-term issuer credit rating from BBB to BBB-, leaving it just one notch above speculative grade with a stable outlook. The core driver behind the downgrade is Oracle's massive capital expenditure in pursuit of the AI wave, which has severely eroded its free cash flow. S&P estimates that approximately half of Oracle's $638 billion in remaining performance obligations stem from a single customer, OpenAI, a concentration risk flagged as a key credit vulnerability.

The downgrade compounds broader market unease as Oracle's credit default swap spreads recently hit all-time closing highs, surpassing levels seen during the 2008 financial crisis. Rating agencies including Moody's have also warned that the AI investment surge is straining the financial resilience of major tech firms. While Oracle has secured notable contracts — including a near-$7 billion 10-year Department of Defense deal and an expanded Google Cloud partnership — investors remain cautious about whether future AI revenue can justify the debt burden accumulated today.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)