Oracle shares dropped 5% to $192.09 after bondholders filed a lawsuit concerning $18 billion in notes, alleging the company failed to disclose the need for additional debt required to fund its AI infrastructure buildout.
- The lawsuit specifically names Oracle, CEO Larry Ellison, and the banks involved in issuing the notes.
- KeyBanc maintained its Overweight rating and $300 price target, arguing the stock is undervalued post-selloff due to strong cloud and software fundamentals.