Oracle’s 400% Debt Balloon: Wall Street’s Biggest Margin Play

Amazing to see Oracle's stock go up 23% over the last few days but that required them to increase their debt by 400%. The ultimate margin trade. If there is any weakness in AI data center space over the next few years or their floating rate debt sees a spike in interest rates, they are going to be squeezed hard.

Larry Ellison has just made a big YOLO play for AI and he's praying to god the CapEx spend in tech isn't cyclical, but as history has shown us, it usually is.

If you want to dive deeper into this topic check out our live stream episode: OpenAI's & Microsoft's $100B Non-Profit Agreement, Oracle Has Too Much Debt, Googler on Claude Code.

For our Patreon supporters, this week’s exclusive live stream: Satyajit “Sunny” Dutt, PhD in Economics from the University of Frankfurt, Data Scientist at the German Central Bank, and currently working at Apsona, will discuss the economic impact of tariffs and AI’s impact on the economy.

Cheers,
Jordan