Oracle stock crashes 30%—worst quarter since 2001
Oracle's stock just took a huge hit, dropping 30% this quarter—the steepest fall since 2001—even as most of the market went up.
The slide is making investors rethink how risky AI infrastructure bets can be.
Why does it matter?
Even with the stock plunge, Oracle's future business looks massive: performance obligations jumped 438% to $523 billion, and cloud revenues are up 68%. GPU-related revenues also soared by 177%.
But all this growth comes with a catch—Oracle is spending big ($50 billion planned for next year) and taking on more debt, which has some worried about its financial stability.
What's behind the drop?
The company's heavy investments in cloud and AI (including big contracts with OpenAI) mean higher costs and more debt, including $248 billion in leases and an $18 billion bond sale.
Some fear this could hurt Oracle's credit rating.
Still, analysts raised their earnings forecast by nearly 8%, betting that strong demand for GPUs could help Oracle bounce back.