Oracle Corp (NYSE:ORCL) just spurred another tech selloff , despite the company denying a Financial Times report that Blue Owl Capital's plans to finance its $10 billion Michigan data center fell through.
Oracle's stock has dropped 19% within just one month, unsettling investors who previously witnessed its rise earlier this year. The decline began after a revenue miss in the December quarter, but a closer examination reveals further troubling factors.
Oracle's selloff, tied to AI spending and debt fears, has rattled investors. Diversifying with top tech ETFs like XLK could help mitigate single-stock risk.
In recent weeks, Oracle's stock has been cut in half, with Mr. Market finally acknowledging risks tied to Oracle's ambitious plans for OCI. Oracle's Q2 FY2026 results showed 34% y/y cloud growth and a -$10B free cash flow due to aggressive, debt-fueled AI CAPEX spending. Further, ORCL's business backlog (RPO) surged to $523B, driven by major commitments from Meta and Nvidia, but execution and OpenAI funding risks persist.
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Major U.S. indexes fall on AI weakness. Investors are growing enthusiastic over Chinese chipmakers.
Major U.S. indexes fall on AI weakness. Blue Owl Capital pulls out from funding Oracle's $10 billion data center.
Leveraged Oracle ETFs faced an early test of volatility Wednesday as news of stalled data center funding talks sent Oracle Corp. (ORCL) shares down 4.8% midday. That triggered sharp moves in both the bull and bear products launched less than a month ago.
The slide this month by Oracle (ORCL) and Broadcom (AVGO) has reminded investors that artificial intelligence (AI) stocks don't move up in a straight-line fashion. They may also want to consider that prior pullbacks by mega-cap AI equities have often proven to be buying opportunities.
New rumors of stalled data-center funding have sent Oracle's stock lower, but some experts argue the negative narrative has gotten too harsh.
Maintaining a Buy rating on Oracle Corporation amid the gloom, as buyers defend the critical $185 support stoutly, not about to give in to the bears yet. Despite ORCL's RPO exceeding $520B, the market demands greater near-term clarity on what is, after all, a multi-year revenue conversion opportunity. Rising CapEx needs, deepened debt concerns, and negative FCF projections through FY2028 heighten scrutiny of ORCL's liquidity and risk profile.
Apple's stock faced headwinds earlier in 2025 because of sluggish iPhone sales, weaker consumer spending in China, and uncertainty about tariffs. Marvell has been a beneficiary of increasing demand for data infrastructure – primarily custom silicon – through its relationship with Amazon. Oracle reported strong second-quarter results and exceptional forward guidance, especially for its Oracle Cloud Infrastructure business.