Oracle Stock Is Gaining Monday: What's Going On?

Oracle (NYSE: ORCL) stock saw a nearly 2% increase on Monday, indicating a potential rebound despite a recent credit downgrade to BBB- by S&P Global Ratings due to its debt-funded AI data-center expansion. The company faces scrutiny over its $260 billion in data center lease obligations and negative free cash flow but is expected to report higher earnings and revenue in its upcoming September 8 report. Despite a significant 40.71% decline over the past 12 months, analysts maintain a consensus Buy rating with an average price target of $258.50, suggesting confidence in its long-term AI growth prospects.