How much did Oracle raise, and what did it sell?

It sold 86.2 million shares at $116 and $10 billion of notes at 7% to 8.65%, for a total of $20 billion — exactly the amount it had capped new raises at on Oct. 28.

How much will the raise cost Oracle?

About 3% more shares and roughly $780 million a year of interest, or about 55 cents a share at most against fiscal 2028's $11.08.

What do analysts expect for Oracle stock?

The 41 analysts covering Oracle see $235 on average, according to TIKR.

AI Stocks & MarketsAI Business & IndustryYahoo Finance AI6h agoNov 5, 2026, 13:01 JST

Oracle drops 14% after $20 billion raise, but 14x multiple looks cheap

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3 Key Points

What happened
Oracle sold $20 billion of stock and bonds — 86.2 million shares at $116 and $10 billion of notes at 7% to 8.65% — and the stock fell 14% for the week. AI stocks also sank after Amazon reported.
Why it matters
The raise costs about 3% more shares and roughly $780 million a year in interest, but Oracle targets over $30 billion of free cash flow in fiscal 2029, more than twice the consensus.

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Context & Analysis

Oracle's drop came in two parts. The first was self-inflicted: on Oct. 28 it capped new raises through fiscal 2030 at $20 billion, then sold exactly that — 86.2 million shares at $116 and $10 billion of notes — and the stock still fell 9% on the day. The second part was the wider AI trade. Amazon's trailing free cash flow turned to a $42.4 billion outflow on AI spending, and the Nasdaq 100 fell more than 3% on Oct. 30, a day with no Oracle news. CoreWeave, with the same AI exposure and costlier debt, fell 24%.

The funding question is now settled through fiscal 2030, which shifts attention to Oracle's own cash. It targets over $30 billion of free cash flow in fiscal 2029, more than twice the consensus. At 14x forward earnings — far under its 21x five-year average — investors are paying as if the buildout won't pay off, which is the basis for the buy call.

FAQ

How much did Oracle raise, and what did it sell?: It sold 86.2 million shares at $116 and $10 billion of notes at 7% to 8.65%, for a total of $20 billion — exactly the amount it had capped new raises at on Oct. 28.
How much will the raise cost Oracle?: About 3% more shares and roughly $780 million a year of interest, or about 55 cents a share at most against fiscal 2028's $11.08.
What do analysts expect for Oracle stock?: The 41 analysts covering Oracle see $235 on average, according to TIKR.

Yahoo Finance AIRead Original Article

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