Oracle Corporation (ORCL) Investors: Kessler Topaz Meltzer & Check, LLP Announces that the Firm has Filed a Securities Fraud Class Action Lawsuit Against Oracle Corporation and Encourages Investors to Contact the Firm

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• Oracle's $248 billion lease commitment disclosure is a bombshell disclosure, with lease commitments increasing massively from just under $100 billion in the prior quarter

  80% confidence

• Oracle pushed back completion dates for data centers developing for OpenAI to 2028 from 2027 due to labor and material shortages

  80% confidence

• OpenAI could account for more than a third of total Oracle revenues by fiscal 2028 and even a greater share by fiscal 2030

  80% confidence

• Blue Owl Capital pulled out of funding a $10 billion Oracle data center intended to serve OpenAI as a result of concerns about Oracle's spending commitments and rising debt levels

  80% confidence

• Oracle's promises of massive new revenues from its increased AI infrastructure business were unlikely to materialize

  80% confidence

• Oracle's AI infrastructure strategy would result in massive increases in CapEx without equivalent, near-term growth in revenue; the Company's substantially increased spending created serious risks involving Oracle's debt and credit rating, free cash flow, and ability to fund its projects

  80% confidence

• The Company's substantially increased spending on AI infrastructure would rapidly convert into accelerating revenue and profit growth

  80% confidence

• Oracle stock price target of $175, representing a 40% pullback

  80% confidence

• Oracle expects to spend less than $100 billion on AI growth plans

  80% confidence

• Oracle's future lease exposure far exceeds similar commitments by peers, with a mismatch between the long duration of the property leases and much shorter contracts with key customers such as OpenAI

  80% confidence

• Oracle has very good line-of-sight for capabilities to spend on CapEx right before it starts generating revenue

  80% confidence

• Oracle really matters because it is the harbinger of the AI capex boom, and this repricing in debt markets is very consistent with the view that risks are building

  80% confidence

• OpenAI's ability to meet contractual obligations will be contingent on AI tailwinds continuing and its models being a market leader to continue to raise external financing

  80% confidence