Oracle Shares Plunge 4.47% as Earnings Miss and AI Spending Surge Spur Debt Concerns

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

The decline followed Oracle’s second-quarter earnings report, which revealed revenue fell short of expectations at $16.06 billion, despite beating per-share earnings estimates. The company’s capital expenditures surged to $12 billion, a 200% year-over-year increase, raising questions about the sustainability of its AI and cloud infrastructure investments. Analysts noted that the rapid spending outpaced revenue growth, signaling potential strain on financial flexibility.

Broader market anxiety was amplified by Broadcom’s earnings report, which highlighted contracting AI-related margins. This reinforced fears of an overvalued AI sector, with investors reevaluating long-term profitability prospects for tech giants. Oracle’s reliance on high-interest debt to fund its expansion further deepened concerns about debt sustainability amid economic uncertainties.

Oracle’s stock had previously surged on optimism around its AI-driven cloud strategy, but recent volatility underscores the sector’s sensitivity to earnings shortfalls and macroeconomic headwinds. The drop in Larry Ellison’s net worth, which fell by $25 billion in a single session, reflects the concentrated risks faced by tech leaders whose wealth is tied to market performance.