JP Morgan: Oracle is in the "performance demonstration stage" as it has placed heavy bets on AI debt
As Wall Street searches for cracks in the artificial intelligence boom, Oracle's aggressive AI spending plan has drawn close attention to the corporate bonds of this cloud computing giant. JP Morgan credit analyst Erica Spear expects the pressure on the company's bonds to persist in the new year. After the earnings report showed Oracle's cloud revenue fell short of analyst expectations, the company's stock price plummeted, and its credit risk measure hit a 16-year high. According to CreditSights analysts, since Oracle released its earnings report, its bond spreads have widened, and its debt trading has firmly settled in the high-yield territory
Source: Wallstreetcn The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
Post your comment
No Comments