Oracle shares slump after $40 billion financing plan; Ares Management posts earnings miss and investor stake changes

Oracle's stock dropped more than 12% after the software giant disclosed a $40 billion financing package for fiscal 2027, adding $20 billion that had not been previously announced. Despite reporting record quarterly and full‑year earnings—revenues of $67.4 billion (up 17%) and EPS of $5.83—the company posted negative free cash flow and a $23.7 billion cash burn for the year, sparking investor concern.

Ares Management reported fourth‑quarter earnings of $1.24 per share, missing analysts’ consensus estimate of $1.32. Institutional investors made mixed moves: Parnassus Investments cut its holding by 1.8% to 0.12% of the company, while Vanguard, Massachusetts Financial Services, Geode Capital, Capital International, and Principal Financial increased their stakes. About 50% of Ares’s shares are owned by institutions, and analysts adjusted price targets and ratings following the earnings miss.