Oracle’s partner in a $300 billion deal, OpenAI, is not expected to generate cash until 2030. Bond markets are worried about Oracle’s financing needs. While Oracle’s stock has dropped 19.2% in the last five days, the market is skeptical about its AI investments.

The concerns stem from Oracle’s $300 billion data center deal with OpenAI, with the AI company renting servers and Oracle needing to build IT infrastructure. Oracle’s bond yields are rising, and credit default swap spreads are widening, indicating stress in the bond markets.

The market fears $23.8 billion, $21 billion, and $14.2 billion cash outflows for Oracle from 2026 to 2028. Deutsche Bank forecasts a $143 billion cash burn for OpenAI from 2024 to 2029. While these concerns may affect the AI market, Alphabet has a different financial outlook.

Alphabet is expected to generate $225 billion in free cash flow from 2025 to 2028 despite increased capital spending. Unlike Oracle, Alphabet’s spending supports its own computing needs. The decline in Oracle’s shares seems to be a company-specific issue rather than a broader market problem.

Considerations before buying Oracle stock include the advice of the Motley Fool Stock Advisor team. Oracle did not make their list of top 10 stocks, which historically have seen significant returns. Stock Advisor boasts a 951% average return compared to the S&P 500’s 192%.

For more information on the best stocks to invest in now, consult the Motley Fool Stock Advisor team. Past recommendations like Netflix and Nvidia have yielded substantial returns. Join an investing community focused on individual investors for potential market-crushing outperformance.

Read more at Nasdaq: Why Shares of Oracle Are Getting Crushed This Week