Why Shares of Oracle Are Sinking Today

By Bram Berkowitz – Dec 12, 2025 at 12:04PMKey PointsOracle recently reported disappointing earnings.Broadcom's backlog of orders failed to excite artificial intelligence investors.Investors are concerned about valuations, intense spending on AI-related infrastructure, and whether these investments will pay off.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: ORCLOracleMarket Cap$567BToday's Changeangle-down(-4.26%) $8.48Current Price$190.37Price as of December 12, 2025 at 12:59 PM ETThe artificial intelligence cloud solutions provider continued to fall following Broadcom's earnings report last night.Shares of cloud giant Oracle (ORCL 4.26%) traded over 5% lower, as of 12:04 p.m. ET today. The company continued to slide, as more concerns over artificial intelligence emerged following the release of Broadcom's earnings report last night. From AI star to AI concern With Oracle's stock now trailing the broader market, it's easy to forget that just a few months ago, Oracle reported one of the year's most impressive earnings reports, which sent shares surging by some 40%. The stock surged after the company reported over $450 billion of remaining performance obligations, driven by demand for Oracle's AI cloud solutions, which are delivered through the company's global data center network. Image source: Oracle. However, Oracle has given back those gains after investors began to realize how much debt the company would need to take on to complete its data center buildout, and on reports that Oracle's AI data center solutions have been operating under extremely thin margins. Those concerns sent shares down again after the company reported earnings earlier this week that fell short of expectations on revenue. Management also significantly hiked its guidance for capital expenditures by 40%. ExpandNYSE: ORCLOracleToday's Change(-4.26%) $-8.48Current Price$190.37Key Data PointsMarket Cap$567BDay's Range$185.99 - $197.8552wk Range$118.86 - $345.72Volume1.7MAvg Vol26MGross Margin74.29%Dividend Yield0.96% Investors had more concerns this morning after the chipmaker Broadcom reported earnings last night. The company's backlog for AI-related orders, which management described as a minimum of $73 billion, clearly disappointed investors.Advertisement Oracle will be heavily impacted by AI sentiment Given its ambitious AI business, Oracle's stock is likely to live and die by investor sentiment toward the AI sector, at least in the near term. Broadcom's earnings did little to keep investors excited in a sector that has now set a very high bar. Ultimately, I think the stock will remain volatile in the near term. Long term, I still think the stock can work, but Oracle must now prove to the market that all of its planned investments will yield strong returns.About the AuthorBram Berkowitz is a contributing Motley Fool stock market analyst covering financials, technology, consumer goods, and macroeconomic trends.

Before The Motley Fool, Bram worked in equity research covering bank stocks and as a reporter for local publications. He holds FINRA Series 7 and 66 licenses, as well as a bachelor’s degree in business with a minor in economics from Syracuse University.TMFBramX@BramBerkoRead NextDec 12, 2025 •By Daniel FoelberEven Though Oracle Fell After Earnings, I'd Still Rather Buy It in December Over Every "Magnificent Seven" Stock (Except One)Dec 12, 2025 •By Timothy GreenOracle Stock Just Tumbled: Here's One Reason WhyDec 12, 2025 •By Jose NajarroWhy Oracle Stock Dropped After the Company Reported a Massive Increase in RPODec 11, 2025 •By Timothy GreenOracle's Debt Balloons to $108 Billion as AI Spending SoarsDec 11, 2025 •By Johnny RiceWhy Oracle Stock Is Plummeting TodayDec 10, 2025 •By John BallardWhat Is One of the Best Tech Stocks to Hold for the Next 10 Years?