Oracle's Investment Grade Rating: A Misaligned Thesis The recent downgrading of Oracle's credit rating by S&P Global Ratings has raised more questions than answers about the company's financial prospects.
Specifically, how can a firm that expects to see its revenue increase by 240% over the next few years, while simultaneously increasing its debt by an astonishing 410%, be considered investment grade?
The numbers don't add up. Oracle is rapidly pivoting its business model in hopes of capitalizing on the emerging trend of AI related investments.