Oracle(US:ORCL) Ge Long Hui A P P·2025-12-10 10:29Core Viewpoint - Oracle's strong earnings outlook has shifted dramatically in just one quarter, with the stock price plummeting 33% since reaching an all-time high on September 10, amid rising concerns in the AI sector regarding capital expenditures and potential circular trading arrangements [1] Company Summary - Oracle is set to release its earnings report after the market closes, following a significant decline in stock price [1] - The company has stretched its balance sheet to the limit, resulting in negative free cash flow and a high leverage ratio, raising concerns among investors [1] - The risk associated with Oracle's debt has become a major worry, with hundreds of billions of dollars in bonds issued through direct debt and indirectly supported projects in recent months [1] - The cost of insurance against Oracle's debt default has surged to its highest level since March 2009, indicating heightened investor anxiety [1] Industry Summary - The AI sector is currently facing a wave of skepticism, primarily due to substantial capital expenditures and the nature of some partnership arrangements [1] - Analysts suggest that the uncertainty surrounding Oracle's financial situation outweighs any potential positive outcomes from its upcoming quarterly earnings report [1]