Oracle Shares Plunge 4.47% as Aggressive CAPEX and AI Spending Concerns Weigh

Oracle shares plunged 4.4657% in pre-market trading on Dec. 15, 2025, amid growing investor concerns over the company’s aggressive capital expenditures and mixed earnings results.

The selloff followed Oracle’s second-quarter earnings report, which revealed a revenue miss of $16.06 billion against an expected $16.21 billion. While earnings per share of $2.26 exceeded forecasts, the company’s $12 billion in capital expenditures—up sharply from $4 billion in the prior year—spooked investors. Analysts highlighted the rapid acceleration in AI-related spending, which has yet to translate into robust cloud revenue growth, as a key driver of the decline.

Market anxiety intensified after Broadcom’s earnings report showed contracting AI margins, reinforcing fears of a potential AI sector slowdown. Oracle’s heavy reliance on high-cost financing to fund its infrastructure expansion has raised questions about long-term sustainability. Despite a 34% year-over-year increase in cloud revenue, the segment’s performance fell short of expectations, further dampening sentiment.

The broader tech sector also faced headwinds, with the Nasdaq-100 dropping 1.8% as investors recalibrated expectations for AI-driven growth. Oracle’s stock, down over 12% for the week, reflects a shift in risk appetite as markets weigh the balance between innovation investment and near-term profitability.

With uncertainty persisting in the AI and cloud infrastructure space, traders are closely watching key technical indicators and company-specific events to gauge the next move. These analyses aim to identify whether Oracle's strategic spending aligns with long-term shareholder value or signals overextension in the face of evolving market dynamics.