Brodie Ford

But what that really underscores is how Oracle's become this poster child of all the AI financing fears.

It's expected to be negative free cash flow for the next couple of years as it builds massive data centers.

And the big question has been, how much money will they have to borrow to do that?

Will they be able to maintain their investment grade?

And they essentially were trying to respond to these concerns and say that, no, we have a solid plan.

Well, they're expected to get a ton of free cash flow once you look a couple years out, once those OAI contracts and others start flowing.

And what's particularly interesting today is to see them issue equity.

And often when that happens, investors don't like dilution and the stock goes down.

So it's funny to see the stock go up on an equity issuance.

And what that means is that the company is willing to do what it takes to keep investment grade.

It does not want to get saddled with some incredible interest rates.

We've heard a lot of concerns on these loans.

And so they're trying to show that they're going to do what it takes to maintain a good rating.

Absolutely.

And I think what it is, too, is just clarity.

I mean, there's been so much uncertainty about, hey, is Oracle going to be able to get all of the loans it needs?

Is it going to be able to complete this build out seamlessly?

Is OpenAI going to pay its bills?

That's a lot of the questions that have been weighing on the stock.

And so kind of any new information that shows a specific plan, almost whatever that plan is, as long as it seems reasonable, is going to be read as good news.