This article first appeared on GuruFocus. Oracle (NYSE:ORCL), the database and AI cloud provider, faced a tougher market for AI debt Wednesday as bond buyers demanded more compensation. Shares fell approximately 1.1% to $147.53. For a company building out cloud capacity, the price of borrowing is becoming harder to ignore. Warning! GuruFocus has detected 6 Warning Signs with ORCL. Is ORCL fairly valued? Test your thesis with our free DCF calculator.ORCL GF Value chart The gap is striking. According to Reuters, spreads for AI related issuers averaged about 115 basis points, versus 78 basis points across the broader investment grade market. That is a 37 basis point difference, or roughly 47%.
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