Oracle Stock Falls 15.6% in January Amid Bondholder Lawsuit, Analyst Downgrades, and AI Infrastructure Concerns

Oracle stock fell 15.6% in January due to a bondholder lawsuit, analyst downgrades and price cuts, and a macro environment hostile to AI infrastructure spending. Bondholders sued Oracle for allegedly not disclosing its need for more debt to fund its AI data center buildout. Analysts cut price targets, with Morgan Stanley slashing its target from $320 to $213. The broader market also weighed on Oracle stock, with investors concerned about the company's rapidly growing debt.