tech
Oracle stock has worst week since 2001 dot-com bust as AI financing concerns escalate
Oracle's surging spending, negative free cash flow and $130 billion debt pile are weighing on the stock.
TL;DR
- Oracle's stock dropped 19% this week, its worst weekly performance since August 2001.
- Concerns are rising about Oracle's large debt load and its AI investment strategy.
- The company is raising significant debt to fund AI infrastructure, including data centers.
- Oracle had approximately $130 billion in debt by the end of May and plans further financing rounds.
- Despite stock performance, a majority of analysts recommend buying Oracle stock.
- The company faces competition from cloud giants and market concerns about AI replacing software products.
- Oracle's headcount decreased by 13% in fiscal 2026.