Oracle's Stock Is Plummeting. Is This an Opportunity or a Red Flag?

Oracle's stock fell over 12% after announcing plans to raise $40 billion in debt and equity financing, despite reporting record earnings and strong guidance. The company posted record Q4 EPS, 17% revenue growth to $67.4B, and raised FY2027 EPS guidance to $8.05. However, negative free cash flow of $23.7B and elevated capital expenditures spooked investors, though analysts view the sell-off as an overreaction given Oracle's $638B backlog and intact fundamentals.