Morgan Stanley Warns on Oracle Debt Risks as Credit Default Swaps Hit Record

Key Facts

1Morgan Stanley analysts warned that delays in data center construction will lead to delayed revenue and cash flow for Oracle.

2Oracle's Credit Default Swaps (CDS) closed at a record 261bps, implying a heightened probability of default.

Morgan Stanley analysts warned that delays in data center construction will lead to delayed revenue and cash flow for Oracle. Reuters reported that Oracle's Credit Default Swaps (CDS) reached a record 261 basis points, implying a heightened probability of default according to analyst assessments.

ORCL was trading at $141.49 on October 9, 2026, while MS closed at $187.44 on October 8, 2026. These warnings come as the company faces challenges completing infrastructure necessary to monetize AI investments, with ZeroHedge reporting that delays could prevent Oracle from realizing approximately $600 billion in tied future revenue.