Oracle's AI Bet: High Risk, High Reward

0:00It's March 28th. Welcome in. This is Durham News Today, where local news meets AI. Oracle Stock's been on a wild ride, dropping 58% from its all-time high of $346 to around $100. $39 now, with a market cap of $411 billion. Revenue's growing faster than in 15 years, thanks to stacking AI contracts and Wall Street's watching close. To chase that AI boom, Oracle's pouring cash into infrastructure, securing over 10 gigawatts of power and data centers over the next three years. CapEx jumped to $21 billion last fiscal year, and could hit $50 billion this year, a massive 139% spike, that spending flipped free cash flow from positive $11.8 billion two years back to negative $0.4 billion last year, and projections, show its sinking to minus $23 billion soon. They're funding it with $30 billion in bonds, and stock, pushing long-term debt to $125

1:01billion. Income folks ironing the $2 annual dividend, yielding about 1.43% and costing $5.75 billion yearly, got a worry since negative cash flow means leaning on debt, or reserves, not sustainable forever. Cash from operations is climbing to $26 billion this year. AI centers hit 30% margins already, and earnings per share could grow, 30% yearly through 2030. Oracle's all in on AI growth while keeping that payout, but its high risk investors stay sharp on the balance sheet bets.