Oracle Stock Falls After $20B Fundraising, Putting AI Returns Under Scrutiny

US stock futures were mixed on Tuesday, with AAPL down 4.5% premarket due to margin concerns despite strong Q4 revenue. ORCL rose 0.4% after a $20B share sale plan. PLTR fell 5% despite beating earnings. NVDA gained 1.3%, MRVL up 2% on acquisition news, AMD up 2.4% ahead of earnings. AEHR surged 15.5% on record revenue and strong outlook. Midterm elections and earnings calendar also in focus.

Oracle stock fell 8.76% to $119.22 on Monday, closing below key moving averages. The stock showed bearish daily signals, with RSI14 at 38.34 and MACD histogram at -0.09. Volume was 58,484,300 shares. The company announced a common stock and senior notes offering post-market, pricing shares at $116.00 each.

German 10-year Bund yield fell to 3.29%, its lowest since August, as tech stock declines and U.S. election caution drove investors to sovereign debt. Apple's profit margin warning contributed to the shift. U.S. tech giants like Alphabet and Oracle are issuing bonds in Europe to fund AI infrastructure, potentially increasing supply and affecting borrowing costs.

Meta plans to raise up to $95B through stock sales, joining other Big Tech firms like Alphabet, Amazon, and NVIDIA in seeking large-scale financing for AI expansion. These companies are turning to debt and equity markets, marking a shift from relying solely on operating cash. Meta's plan includes a $35B stock offering and a $60B at-the-market program, pending Class C share trading in early 2027.

Oracle (ORCL) faces selling pressure after announcing a $20B AI financing plan, including $10B in stock and debt offerings. The stock offering at an 11% discount has raised dilution concerns. Analysts note potential support at $90 if credit ratings are downgraded. Oracle's debt exceeds $125B, and heavy AI spending has turned free cash flow negative. The company trades at a P/E of 18.7x, below its 5-year median.

European shares fell on Tuesday, led by tech sector declines after Apple warned of margin compression from rising chip costs. Semiconductor stocks like ASML and STMicroelectronics dropped 2-4%. Oracle's $20B capital raise also raised AI funding concerns. Lufthansa and Philips shares moved on earnings news. U.S. midterms and nonfarm payrolls added to market caution.