Oracle and Blue Owl slip after Oracle reportedly cites force majeure
ORCL•Oracle shares fell 4.3% and Blue Owl shares fell 5.2% in pre-market trading after Oracle reportedly cited force majeure on a New Mexico data center project. Oracle’s five-year credit default swaps reached a record 221.78 basis points.
1. Force majeure notice
Oracle reportedly issued a force majeure notice to the developer of a New Mexico data center project, aiming to protect itself from potential cost increases. Reuters said it could not independently verify the report.
2. Shares and swaps
Oracle shares fell 4.3% to $138.50 in pre-market trading on Thursday, while Blue Owl shares fell 5.2%. Oracle’s five-year credit default swaps reached an all-time high of 221.78 basis points, according to Markit data.
3. Year-to-date performance
Oracle shares were down about 25.8% year to date, compared with a 12.6% rise in the S&P 500, and traded about 55% below their 52-week intraday high of $322.54.
