Oracle Plunges 19% This Week, Worst Weekly Performance in 25 Years Amid AI Capex Concerns

According to CNBC, Oracle (ORCL-US) plunged 19% this week, marking its worst weekly performance in 25 years since August 2001. The decline reflects growing market concerns over the company's debt accumulation and whether its massive AI infrastructure investments will deliver returns.

Oracle's total debt reached approximately $130 billion as of May, with capital expenditures projected at $56 billion for fiscal 2026, up 162% year-over-year. The company has committed to $40 billion in financing for fiscal 2027 through debt and equity offerings to support AI infrastructure initiatives. Stock price has fallen approximately 55% from its September peak near $900 billion in market value. Evercore analysts noted that investor focus will remain on financing leverage and capital spending pace despite strong demand signals.