Why Oracle Stock Is Sinking Once Again

By Johnny Rice – Dec 17, 2025 at 2:31PM ESTKey PointsOracle lost a major financing partner for its Michigan data center, adding pressure to an already difficult week for the stock.The market is pricing Oracle bonds as riskier than its official credit ratings suggest.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: ORCLOracleMarket Cap$542BToday's Changeangle-down(-5.64%) $10.65Current Price$178.00Price as of December 17, 2025 at 3:24 PM ETA key financing partner just walked away from the table.Shares of Oracle (ORCL 5.64%) are down 5.1% as of 2:31 p.m. ET today. The drop comes as the S&P 500 and Nasdaq Composite lost 1% and 1.5%, respectively. Oracle has reportedly failed to secure financing from Blue Owl Capital to fund the construction of a new data center, extending a multi-day sell-off following last week's earnings. Blue Owl walks away from $10 billion data center deal Oracle will now have to look elsewhere to find the $10 billion it needs to fund the construction of a new data center in Michigan. Blue Owl has been a major partner in financing Oracle's artificial intelligence (AI) ambitions thus far, making the missed deal all the more concerning to investors, as it adds to the narrative that Oracle is a credit risk. Image source: Getty Images. Oracle's bonds are trading like junk Oracle may now have a hard time securing financing from others -- at least on favorable terms -- given Blue Owl walked away from the deal. The company's bonds, despite retaining their investment-grade ratings, are trading at levels comparable to junk bonds. Credit default swaps (essentially insurance against a company defaulting on its debt) have reached highs not seen for Oracle since the great financial crisis. Oracle is highly leveraged, relying on expensive debt to fund its rapid buildout of AI data centers. It's an extremely risky play that requires AI demand to continue growing at a lightning pace. I would not own the stock. Advertisement About the AuthorJohnny Rice is a contributing writer for The Motley Fool covering tech stocks. He previously contributed to various financial publications.TMFJohnnyRiceRead NextDec 16, 2025 •By Bram BerkowitzFrom Oracle to Broadcom, the Concerns About Artificial Intelligence Stocks Are Starting to Pile UpDec 15, 2025 •By Daniel FoelberDown 42% From Its High, Is Oracle the Best AI Growth Stock to Buy in 2026?Dec 15, 2025 •By Daniel Foelber523 Billion Reasons to Buy Oracle Stock in DecemberDec 15, 2025 •By Geoffrey SeilerOracle Shares Have Plunged.

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