Oracle shares under pressure: What's driving the recent selloff?

Oracle shares fell below the key $135 support level despite delivering better-than-expected earnings, as investors raised concerns over massive AI-related capital expenditure and its impact on cash generation. A rising debt pile and a recent credit-rating downgrade compounded worries, even as the company's cloud infrastructure business continued to post robust growth on the back of strong enterprise AI demand. Markets will be watching cloud revenue growth, AI backlog conversion, capex, debt levels and free cash flow to gauge if the heavy AI investments can translate into sustained earnings.