Investors are increasingly worried about Oracle Corporation as its stock has slid nearly 50% from its all-time high reached on September 10. This decline in share price has raised concerns regarding the tech giant’s financial stability and ongoing projects. Reports indicate that asset management firm Blue Owl Capital has withdrawn from Oracle’s ambitious $10 billion data center initiative due to unfavorable debt terms, amplifying apprehensions about the company’s significant debt levels.
This situation has sparked fears that Oracle might be forced to delay the construction of data centers designated for OpenAI, a situation initially highlighted by Bloomberg. However, Oracle has refuted these claims, assuring stakeholders of its commitment to ongoing projects.
On Wednesday, Oracle’s shares dropped by 5.4%, contributing to an overall decline of over 11% for the month. Such turbulence in Oracle’s stock has had a ripple effect on related technology companies, including Broadcom, Nvidia, and Advanced Micro Devices. Consequently, major U.S. stock indexes also succumbed to the downturn, with the S&P 500 falling by 1.16%, the Dow Jones Industrial Average by 0.47%, and the Nasdaq Composite experiencing a notable 1.81% decrease—marking its poorest performance in nearly a month.
Despite the recent downturn in artificial intelligence-related stocks, analysts at Bank of America assert that “the AI trade may still have room to run into 2026.” They caution, however, that rising share prices do not eliminate the risk of a potential bubble forming. Analysts expressed concern in a recent report, emphasizing that while momentum may continue, accurately predicting when a bubble might burst remains challenging.
In other news, investors are bracing for the final interest rate decisions of 2025, with four major European banks set to announce their monetary policies and macroeconomic outlooks. The European Central Bank, Bank of England, Riksbank, and Norges Bank are all scheduled for meetings, although only one is anticipated to adjust its interest rates.
