Oracle’s stock has plummeted 30% this quarter, marking its worst performance since 2001, just three months into new CEOs Clay Magouyrk and Mike Sicilia’s tenure. The sell-off stems from a significant loss of investor confidence in Oracle’s ambitious plans to create extensive data centers utilizing Nvidia chips for OpenAI—an endeavor intended to catapult the company from cloud computing obscurity. Previously, Oracle’s stock surged 36% to $345.72 after OpenAI agreed to invest over $300 billion into Oracle’s cloud infrastructure. However, disappointing quarterly results in December underlined harsh realities. The announcement of a staggering $50 billion in capital expenditures for fiscal 2026—43% more than previously projected—heightened investor skepticism. Additionally, Oracle is committed to $248 billion in leases for cloud capacity expansion. With growing concerns over its ability to meet financial obligations, Oracle’s investment-grade credit rating is increasingly at risk, sending shockwaves through investor sentiment and signaling potential restructuring ahead.
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