Today, Oracle’s shares increased by 1%, riding on the announcement that TikTok has agreed to sell part of its U.S. business to Oracle and other investors. However, the stock has fallen 30% this quarter, marking its sharpest decline since the third quarter of 2001, when it dropped nearly 34%.
The slide comes just three months after Oracle named Clay Magouyrk and Mike Sicilia its new CEOs.
Earlier this month, Oracle announced revenue and free cash flow that were lower than expectations. During the earnings call, new finance chief Doug Kehring outlined plans for $50 billion in capital expenditures for FY2026, which is 43% more than the September plan and twice the amount from the previous year.
In 2026, Oracle plans to allocate $248 billion for leases to grow cloud capacity, along with building new data centers.
Oracle began the year on a positive note with the announcement of Stargate, a joint venture with OpenAI and SoftBank, which aims to invest $500 billion in US AI infrastructure. President Trump revealed the news in the Oval Office in January, surrounded by leaders from the involved companies, including Oracle’s Larry Ellison, triggering a sharp rise in the company’s stock prices.
Oracle shares have declined by 40% since a brief peak in September, when Chair Larry Ellison became the world’s wealthiest individual.
Despite the slump, Oracle stock has risen 15% so far this year.
By CEO NA Editorial Staff
By CEO NA Editorial Staff
