Oracle: Market Anxiety Weighs on the Stock
The cloud computing giant’s stock plunged 13.5% in one week on the New York Stock Exchange. Trading at $223.01 on Wednesday, December 10 at 9:30 p.m., the share price ultimately fell to $188.12 by Saturday, December 13 at 1:30 a.m.
This sharp decline represents a drop in market capitalization from $630.23 billion on December 10 to $535.41 billion on Saturday morning (December 13), meaning that more than $90 billion in market value was wiped out. Macrotrends
But what explains this drop?
Oracle published FY1 2026 Q2 results, showing solid revenue growth, up 14% YoY, but slightly below market expectations, which made the share price decline. Investor Oracle
In Oracle’s balance sheet, we can observe that short-term debt increased from $7.271 billion as of May 31, 2025 to $8.091 billion as of November 30, 2025.
Long-term debt rose from $85.287 billion to $99.984 billion. This debt consists largely of bonds “notes payable”, with the remainder made up of long-term bank loans “other borrowings”. Investor Oracle
This increase in debt, driven by heavy investment spending on AI and data centers, has not been well received by investors and has added to market uncertainty.
Additionally, a media article reporting delays in the construction of OpenAI’s data centers further fueled the decline in the share price. Bloomberg
However, Oracle denied these rumors, stating: ‘There have been no delays to any sites required to meet our contractual commitments, and all milestones remain on track,’ said Michael Egbert. Reuters , LiveMint
From Market Anxiety to Investment Opportunity
There is also growing concern about a potential AI bubble, which is increasingly discussed by market participants and contributes to overall market nervousness.
Michael Burry, the investor who famously bet against subprime mortgages and generated approximately $800 million in profits (including about $100 million for himself), recently opened put positions against Nvidia and Palantir, with notional amounts of roughly $187 million and $912 million, respectively.
All these factors combined are currently weighing on sentiment. However, it is often during periods of stress that opportunities arise, and investors with a long-term perspective can position themselves accordingly.
At this stage, Oracle is in a heavy investment phase: building infrastructure and scaling AI capabilities. These investments are necessary to remain competitive. Let’s take advantage of these ‘discounts’ and allow time for these investments to translate into profits.
To be continued…
- Oracle’s fiscal year starts on June 1 and ends on May 31 ↩︎
