Oracle shares tumble as pipeline approval delays and credit downgrade raise concerns
Oracle's stock fell about 6‑7% after the company urged the Federal Energy Regulatory Commission to speed approval of the Green Chile gas pipeline feeding its Project Jupiter data center. The drop was amplified by a recent credit rating downgrade to BBB‑, reflecting worries over the $165 billion project cost. Mizuho reiterated an Outperform rating and a $320 price target, indicating potential upside if regulatory hurdles are cleared. Oracle is scheduled to hold an Investor Day on October 28 for further updates.
Why it matters
The share decline shows market sensitivity to regulatory delays and the credit downgrade, pressuring the stock in the short term. Mizuho’s $320 target suggests analysts still see significant upside if approvals are obtained, which could affect investor positioning.
Key facts
- 1Oracle shares fell 6.38% to $134.06. benzinga.com
- 2Mizuho reiterated an Outperform rating and a $320 price target for Oracle. investing.com
- 3Oracle’s current share price was $143.20 at the time of Mizuho’s note. investing.com
- 4Credit rating was downgraded to BBB‑, citing concerns over Project Jupiter’s $165 billion cost. finance.yahoo.com
- 5Oracle holds $37.1 billion in cash and burns $29 billion annually. finance.yahoo.com
- 6Oracle urged FERC to expedite approval of the Green Chile pipeline, which now has a February 2027 start date after a delay from the original August 15 target. benzinga.com
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.