Michael Burry, the investor famous for betting against the US housing market before the 2008 crisis, is now scrutinizing the financial transparency of major technology companies. His analysis published on September 19 on Substack examines the filings of the five main hyperscalers, including Oracle, alleging the existence of trillions of dollars in off-balance-sheet commitments. Oracle reported cloud infrastructure revenue of $7.39 billion in fiscal Q1 2027, up 121% year-over-year, but its share price declined after the release. According to Burry’s analysis, Oracle has $261 billion in off-balance-sheet data center lease commitments, many of which have not yet begun. Rating agency S&P downgraded Oracle to BBB- in July 2026, a level just above junk status, and Burry maintains short positions on the stock.
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