Oracle Stock Plunges 19% This Week, Worst Performance in 25 Years Amid AI Debt Concerns

According to CNBC, Oracle stock plummeted 19% this week, marking its worst weekly performance since August 2001 during the dot-com bust, as investors worry about the company's mounting debt load and large capital commitments to AI infrastructure. The stock has lost approximately 55% of its value over the past nine months, dropping from a peak market cap of $900 billion in September 2025.

Oracle carried about $130 billion in debt at the end of May, with capital expenditures rising 162% to nearly $56 billion in fiscal year 2026. The company recorded negative free cash flow of almost $24 billion in the latest fiscal year and plans to raise $40 billion through debt and equity financing in fiscal 2027, according to the earnings report.