# @benzinga on Instagram

- **Type:** Image
- **Original URL:** https://www.instagram.com/p/DQXbisICKEG
- **Gondola URL:** https://gondola.cc/posts/36300131-benzinga-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/b5789f69b7.jpg
- **Posted:** 2025-10-28T20:20:13.000+00:00
- **Account Owner:** Benzinga | News That Moves (@benzinga) — https://gondola.cc/benzinga

## Caption

A new analysis from J.P. Morgan’s Michael Cembalest has reignited concerns about Oracle’s debt levels, revealing that the company remains far more leveraged than its AI-driven peers despite recent clarifications.

Oracle’s debt-to-equity ratio sits near 500%, compared to just 50% for Amazon and 30% for Microsoft. Even when measured by net debt-to-EBITDA, a more accurate metric, Oracle’s ratio is still around 400%, placing it well above companies like Google, Amazon, and Nvidia, which all hover near zero.

Cembalest explained that stock buybacks have distorted Oracle’s debt picture by shrinking its equity base, making the company appear even more leveraged. Those buybacks also boosted founder Larry Ellison’s ownership stake, which helped fuel investor confidence but reduced flexibility.

He added that while Oracle’s credit rating remains stable and bond investors would likely continue buying its debt, the company’s borrowing capacity is still limited compared to other AI leaders.

The borrowing spree stems from Oracle’s $60 billion commitment to expand its cloud infrastructure and support OpenAI’s massive computing needs. J.P. Morgan previously warned this could mark the start of a debt-fueled AI arms race across Big Tech.

Despite these concerns, Oracle shares are up nearly 70% in 2025, showing investor optimism that its AI investments may eventually outweigh its heavy leverage.

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## Credits

| Name | Username | Profile | Role |
| --- | --- | --- | --- |
| Benzinga | News That Moves | @benzinga | https://gondola.cc/benzinga | Brand |
| Jacob Shipley | @okcmayor | https://gondola.cc/okcmayor | Director of Social Media |

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