Oracle's stock drops 25% in 2 months as AI bets falter
Oracle's stock has slid to $236 as of November 12, 2025—a big 25% drop since September.
The fall comes after Oracle missed revenue targets and earnings slightly disappointed.
Now, investors are unsure if the company can actually turn its big AI partnerships into real profits, especially with data center and energy bills climbing.
Cloud business lagging behind rivals
Oracle's cloud business is lagging behind rivals like Amazon and Microsoft, pulling in just a 14% gross margin—far below rivals like Amazon Web Services (30-35%) and Microsoft Azure (40%+).
With costs rising and a high price-to-earnings ratio of around 55, people are starting to question if Oracle is really worth its current price.
Insider selling and job cuts raise red flags
Insider selling by co-CEO Clay Magouyrk and recent job cuts in the cloud division have only added to worries about profit growth.
For now, everyone's waiting to see if Oracle can improve its margins and actually turn all that tech talk into steady cash flow.