Oracle's $20 Billion Raise Exposes the Cost of Its AI Expansion

This article first appeared on GuruFocus. Oracle Corp. (ORCL, Financials), the enterprise software and cloud infrastructure company, priced a $20 billion stock and bond offering as it raises capital for its artificial intelligence expansion. Warning! GuruFocus has detected 5 Warning Signs with ORCL. Is ORCL fairly valued? Test your thesis with our free DCF calculator. The business sold 86.2 million shares for $116 apiece, an 11.2% discount to its Oct. 30 closing price of $130.67. Proceeds from the equity offering are projected to total around $9.9 billion net.Oracle also offered $10 billion in senior notes over five tranches with maturities ranging from 2029 to 2046.Coupon rates are in the 7% to 8.