Why Shares of Oracle Are Getting Crushed This Week
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By Lee Samaha – Dec 18, 2025 at 4:10PM ESTKey PointsOracle's partner in a $300 billion deal, OpenAI, is projected not to be cash generative until 2030. The bond markets are growing stressed about the company's future financing needs. This appears to be an Oracle problem rather than an industry-wide issue. These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: ORCLOracleMarket Cap$513BToday's Changeangle-down(0.82%) $1.47Current Price$179.93Price as of December 18, 2025 at 3:59 PM ETThe markets are growing concerned with the IT company's ability to finance data center build-outs and its partnership with OpenAI.As of the time of writing, Oracle (ORCL +0.82%) stock is down 19.2% over the last five trading days. The move illustrates growing skepticism over the company's investment in artificial intelligence (AI). What happened to Oracle The bond markets are growing concerned with Oracle's ability to finance its AI investments, and not least its $300 billion data center deal with OpenAI. The AI company is committed to renting servers, while Oracle needs to build out the IT infrastructure and lease the data center "shells." As such, its expenditures are focused on GPUs, networking equipment, and power infrastructure, while taking on leases for the land and buildings. ExpandNYSE: ORCLOracleToday's Change(0.82%) $1.47Current Price$179.93Key Data PointsMarket Cap$513BDay's Range$178.58 - $184.7552wk Range$118.86 - $345.72Volume1.2MAvg Vol27MGross Margin65.40%Dividend Yield1.06% The rise in Oracle's corporate bond yields and the spike in credit default swap (CDS) spreads (a form of insurance against a bond's default), as discussed previously, are signs of stress in the bond markets. The market is concerned about Oracle's financing situation, with the Wall Street consensus calling for cash outflows of $23.8 billion, $21 billion, and $14.2 billion, respectively, in its financial years from 2026 to 2028. Moreover, there are question marks surrounding OpenAI's future profitability, with Deutsche Bank forecasting a cumulative cash burn of $143 billion for OpenAI from 2024 to 2029. Oracle problem not an AI problem? While it's easy to conclude that these fears could and should spill over to the broader AI market, it's worth noting that a peer like Alphabet (GOOG +1.83%), (GOOGL +1.93%) is in a different boat for two reasons.Advertisement Image source: Getty Images. First, despite its substantial ramp in capital spending (the market expects its capital spending to increase from $90.5 billion in 2025 to $131 billion in 2027) , it's still expected to generate a cumulative $225 billion in free cash flow from 2025 to 2028. Second, Alphabet is largely spending to support its own computing power needs, and ultimately its own business. It can adjust its spending in line with its objectives. As such, the decline in Oracle's shares appears to be more of an Oracle-specific issue than a broader market one.Read NextDec 4, 2025 •By Leo SunPrediction: 3 Beginner Stocks That Could Turn Small Bets Into Big FortunesJun 20, 2019 •By Motley Fool TranscribersOracle Corp (ORCL) Q4 2019 Earnings Call TranscriptJun 27, 2013 •By Chris Hill4 Stocks Making Big MovesJun 24, 2013 •By Seth JaysonGolf Clap for OracleJun 18, 2013 •By Seth JaysonCan Oracle Beat These Numbers?Mar 21, 2013 •By Chris Hill4 Stocks Making MovesAbout the AuthorLee Samaha is a contributing Stock Market Analyst at The Motley Fool covering industrials, electricals, energy, materials, transportation, and infrastructure stocks. Prior to The Motley Fool, Lee was a Civil Engineer and Investment Manager. He holds a Bachelor of Civil and Structural Engineering from Southampton University and a Certificate in Investment Management from Chartered Institute for Securities & Investment. Lee first cut his investing teeth on The Motley Fool bulletin boards (commonly referred to as the “Fool Boards,”) and he’s infinitely grateful to all of the investors he learned from in this powerful investing community.TMFSaintGermainX@LeeSamahaStocks MentionedOracleNYSE: ORCL$179.93 (+0.01%) $+1.47AlphabetNASDAQ: GOOGL$302.46 (+0.02%) $+5.74Deutsche Bank AktiengesellschaftNYSE: DB$38.22 (+0.03%) $+1.17AlphabetNASDAQ: GOOG$303.53 (+0.02%) $+5.47*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement