A terrifying warning has sent shockwaves through Wall Street as financial experts warn that a stock market crash is looming on the horizon.
At the eye of the hurricane is tech giant Oracle, which veteran financial analyst David Desjardins fears will be the ‘first domino to fall’ in a brutal tech market collapse.
The company’s stock has already taken a massive beating, with shares of Oracle down almost 50 percent since the beginning of June as panicked investors rush for the exits.
In a devastating blow to its reputation, ratings agency S&P Global downgraded Oracle’s credit rating to BBB- on July 9, leaving it just one step above junk bond status.
Desjardins warns that the company’s success is now almost completely tied to the performance of artificial intelligence darling OpenAI.
Oracle has effectively bet the farm on the AI revolution, building colossal data centers to power the technology, but experts warn this high-stakes gamble could backfire spectacularly.
‘OpenAI is entirely dependent on capital markets remaining wide open to meet its financial obligations,’ wrote Desjardins, who warned that if the company had trouble raising money, ‘Oracle would be in the eye of the storm.’
The collapse would not just destroy Oracle, it could take down the rest of the AI market and touch off a massive stock market meltdown.