Oracle Plunges 19% This Week, Down 55% From Peak as AI Investment Debt Concerns Mount

According to CNBC, Oracle (ORCL) posted its worst week in 25 years this week, falling 19% as investors grow increasingly concerned about the company's massive debt load and whether its hefty AI infrastructure investments will deliver returns.

Oracle's stock has declined 55% from its peak near $900 billion in market value reached last September. The company now carries approximately $130 billion in total debt and faces significant capital demands: fiscal 2026 capital expenditures surged 162% year-over-year to nearly $56 billion, while free cash flow came in at negative $24 billion. To fund AI infrastructure commitments, including partnerships with OpenAI, Oracle plans to raise $40 billion in fiscal 2027 through debt and equity financing.