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Oracle ETFs Face Market Test Amid Data Center Volatility
Etftrendsยท 2025-12-17 21:28
Core Viewpoint - The volatility in Oracle Corp.'s stock has led to significant movements in newly launched leveraged ETFs, highlighting investor reactions to funding concerns related to a major data center project [1][2][3]. Group 1: Stock Performance and ETF Reactions - Oracle shares fell 4.8% amid news of stalled funding talks for a $10 billion data center, leading to contrasting performances in its ETFs [1][2]. - The Direxion Daily ORCL Bear 1X ETF (ORCS) gained 4.7%, while the Direxion Daily ORCL Bull 2X ETF (ORCU) dropped 9.6% [2]. - Over the past month, Oracle's stock has declined 18.3%, despite an 8.2% year-to-date gain [3]. Group 2: Funding and Debt Concerns - Blue Owl Capital's withdrawal from backing Oracle's Michigan data center is attributed to concerns over Oracle's rising debt and AI infrastructure spending [3]. - Oracle disputes the report, stating that negotiations for the equity deal are progressing as planned [4]. - The company has disclosed $248 billion in lease obligations for data centers, a 148% increase since August, with net debt reaching $105 billion [7]. Group 3: ETF Inflows and Performance - ORCS has attracted $2.68 million in net flows over the past month, with a one-month return of nearly 17% [5]. - ORCU has seen stronger inflows of $24.71 million despite a nearly 33% decline over the past month, now managing $16.7 million in assets [6].